Gold rises by 1% after reducing expectations for higher interest rates

Gold rises by 1% after reducing expectations for higher interest rates

Gold prices rose sharply Thursday, as investors’ expectations of higher interest rates in the United States fell after the conclusion of the Fed meeting.

On the Comex division of the New York Mercantile Exchange, August gold delivery rose / August rose to $ 10.60 per ounce, or the equivalent of 0.9%, to trade at $ 1,187.40 per ounce during European morning trade, after recording the highest at the meeting by $ 1,188.40 per ounce .

A day earlier, gold prices fell 4.10 cents, or the equivalent of 0.35%, to close at $ 1,167.80 an ounce, gold is likely to find support at $ 1,171.90 per ounce, its lowest price since June 15, and resistance at 1, to $ 191.80 per ounce the highest price since 10 June

Also in the Comex, silver delivery in July rose 1.19 cents, or the equivalent of 1.2%, to trade at $ 16.13 per ounce. Silver prices fell by 1.8 cents, or equivalent to 0.11%, on Wednesday to close at $ 15.94 per ounce.

Elsewhere in the metals trade, copper delivery in July rose 2.2 cents, or the equivalent of 0.85%, to trade to $ 2,626 a pound.

The dollar index, which measures the strength of the dollar against a basket of six major currencies has declined by 0.1% to trade at 94.36, the lowest level since 19 May

And usually Mayazz weak dollar benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies to the dollar.

The dollar fell in general on Wednesday after the Federal Reserve cut both the growth in the United States and expectations of interest rate expectations, prompting investors to exclude raise expectations about the timing of the initial interest rate.

The president of the Federal Reserve Janet Yellen said the council wants to see “more decisive evidence” for sustainable growth by raising interest rates, but acknowledged that the economy has “expanded to some extent” after the decline in the first quarter.

The delay in raising interest rates lead to a decline in prices for gold, as it reduces the relative of the contract to the metal cost, which does not offer investors any compensation or guarantees.

Market participants are awaiting the release of important US data later in the session in search of other indicators on the strength of the economy and the future path of monetary policy.

In the United States it will be publishing a series of data, including reports on consumer prices and requests for preliminary and manufacturing activity in the Philadelphia area jobless.

At the same time, investors continued to monitor developments surrounding the talks between Greece and international creditors, amid growing fears that the country might default on its debt and be forced out of the euro zone.

Europe wants Greece reduce expenses so you can get on the bailout funds amounting to 7.2 billion euros until Greece is not in trouble defaults on debt repayment, the time of the end of this month ends.

That any default by Greece could lead to the country’s exit from the euro zone.

During later today and European finance ministers will hold talks in Brussels, with no predicted there are high expectations to reach an agreement.

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