Gold languished before the Fed meeting

Gold languished before the Fed meeting

Gold is suffering from losses incurred last night and it seems that threatened to fall to levels not seen for several years due to expectations of higher US interest rates this week.

It starts the Federal Reserve (Fed) last meeting of the year later in the day amid widespread expectations that declares at the end of the two-day meeting, which raised interest rates for the first time since June 2006.

It is expected to raise interest rates undermines demand for gold, which does not generate interest and at the same time supporting the dollar. Gold lost ten percent of its value already since the beginning of the year to record a decline for the third year in a row due to expectations of a rate hike.

And increased Spot gold transactions 0.1 percent to $ 1063.80 an ounce ounce by 0613 GMT, after having fallen 1.1 percent on Monday. And it increases the price to $ 20 only for the lowest level in almost six years, which struck earlier this month at $ 1045.85 an ounce, according to Reuters.

ANZ analysts said in a note, “the weakness of gold will continue as investors awaited Open Market Committee meeting (Council of the reserve) this week. We believe that the pace of raising interest rates will be the engine for the price of gold over the next year. ”

Some analysts and traders expect further losses. On the other hand, precious metals silver settled at $ 13.70 an ounce after losses lasted six consecutive days.

The metal has come down to $ 13.60 on Monday, the lowest level since August 2009. The platinum rose 0.2% to $ 850.3 an ounce, while palladium rose 0.9% to $ 549.5 an ounce.

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