TeleTrade - Analytics

    TeleTrade

    731.00 6.50/10
    57% of positive reviews
    Real

    09.03.2016 16:20 Gold prices dropped significantly

    Gold has fallen in price today, retreating from a 13-month high. The pressure on the precious metal has a positive dynamics of world stock indices, as well as expectations of further easing of monetary policy of the European Central Bank.

    Analysts expect that the ECB will lower its deposit rate by at least 0.1 percentage points to expand the amount of asset purchases. "If the ECB will meet market expectations, the euro must be weakened and the dollar strengthened, which will negatively affect the value of the precious metal, - said an analyst at Societe Generale Robin Bhar -. I suspect that gold will continue to be traded in the range of $ 1,240- $ 1,280 on the eve of the ECB meeting after this. attention shifts to the Fed meeting, which begins on Tuesday and ends on Wednesday. " The Fed probably will not change the level of short-term interest rates at the March meeting, but did not exclude the possibility of increasing in April and June. Recall, gold, usually is at a pressure in the growth of US rates.
    Meanwhile, it became known that the newly fixed exchange-traded funds outflow after a significant increase in the beginning of the year. Gold reserves in the largest investment fund SPDR Gold Trust fell 2.4 tonnes on Tuesday, recording the biggest outflow in almost four weeks.
    Carsten Fritsch Commerzbank expert noted that the price of gold had been weighed down by a combination of rising stock markets and bond yields. "This seems to have caused some profit-taking. The influx of gold ETF funds also slowed in recent years, so it is very important to look for further changes in the demand for gold." Since the beginning of this year, gold prices rose 18%, which greatly contributed to volatility in financial markets and geopolitical concerns. Gold is seen as an asset of refuge, and the price for it usually grows in periods of instability.
     

    April futures price of gold on COMEX today rose to $ 1256.60 per ounce.

     


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree