Gold rises in price against the background of the US currency weakening

14 Sep 2016
According to data of exchanges, on Wednesday, the gold price rises against the background of a slight weakening of the dollar, caused by declining expectations of an increase in the basic interest rate of the USA Federal Reserve System. As of 08.41 MSK the price of December gold futures on the New York Stock Exchange Comex rose by 0.50 dollars, or 0.04%, to 1,324.2 dollars per ounce. The cost of the December futures contract for silver rose by 0.29% - to 19.03 dollars per ounce. Comments of Lael Brainard, a member of the Board of Governorsof the Federal Reserve System, about the dangers of too rapid increase in the rate significantly reduced expectation, growing up in the markets before, of that in the near futurethe regulator may tighten monetary policy. The meeting of the American regulator will be held on September 20-21. Dollar weakening traditionally has a positive effect on the gold price, since it makes it cheaper for holders of foreign currencies. The dollar index (the dollar to a currency basket of the six countries – major USA trading partners) decreased by 0.04%, to 95.54 points. “Our forecast on gold prices before the Fed meeting is a little“bearish”. Prices will reach the heights of 1300 dollars per ounce, or go below.” - said Shu Jiang,Chief Analyst of Shandong Gold Group to Reuters.
Source: Uncommercial joint ownership "Trans-regional Association  of precious metals producers"