Gold prices are determined by the price of gold to rise further next week as the ongoing global market volatility expected to continue to support the metal in the shortened trading week.
US markets are closed on January 19 to January holiday for Martin Luther King Junior.
And traders and investors to follow the news coming from the Frankfurt next week, with the European Central Bank is scheduled to announce its decision of monetary policy on 22 January.
Some analysts believe that the markets analyzed 75% chance that European Central Bank President Mario Draghi will unveil an expanded quantitative easing program, which will include the purchase of sovereign bonds.
What analysts say
He said Bill Baruch, senior commodities broker in iiTrader will be key in the details of the program, which he said may disappoint the expectations of the secondary market.
He said while Baruch did not provide a time frame that the current momentum with gold, and prices should be coming from the $ 1,300 per ounce basic psychological test area.
Axel Merk, Chief Investment Officer for Investment and Merck said that the uncertainty surrounding the next step Draghi will help gold in the short term.
A brand also gold should perform well after the ECB meeting, focus on the markets will turn to monetary policy to the US Federal Reserve’s decision, it is assumed to be released at the end of this month.
Said Baruch Help Center Investment News: “I think the danger is that the European Central Bank delivered under being added to uncertainty in the market, gold is going to look attractive.
“The path of least resistance for gold is higher.”
A brand Kitco: “real interest rates are negative at the moment and will gold well in this environment.”
Futures US gold for February delivery ended at 1,276.90 dollars for an ounce on 16 January.
Prices rose $ 53.90, or 4.41% for the week as a whole, and the latest market volatility boosted decision to the Swiss National Bank’s policy and put the metal as a safe haven.
According to Commerzbank of companies in the market: “sparked [January 15] the wave of rising prices SNB decision is expected completely to abandon the exchange rate lower EUR-CHF 1.20, resulting in a significant disruption in the financial markets and prompted investors to look for safe haven in gold.
“For more than three years, has been linked to the minimum exchange rate the Swiss franc rate against the euro. To prevent the franc from rising very sharply, and thus avoid any tightening of undesirable monetary policy, the Swiss central bank lowered at the same time the target group LIBOR three-month rate is between -1.25% and -0.25%.
“These decisions make it clear that the Swiss central bank loses confidence in the monetary policy of the European Central Bank, or at least no longer wanted to do the same.”
Report in January 14, HSBC Gold prices, on average, about $ 1,234 an ounce this year’s expectations.
Said HSBC: “… the possibility that further gains USD will adversely affect the financial markets this year, increase the likelihood that investors will seek to gold as a safe haven.
“We expect gold to tighten supplies in 2015. This is due mostly to lower scrap supply but also because we believe in gold supply, after ten years of increases, and flattening out.”