On Wednesday gold grew on the weakening of the dollar

15 Sep 2016
On Wednesday in New York gold futures quotations ended the session at the positive territory receiving support from the dollar weakening and expectations of the increase of the key FRS interest rate in September. December gold futures at COMEX were closed with an increase of 0.2% that is 1326.1 dollars per troy ounce. At the prior five sessions they were closed in the red. Last weeks the gold market has been influenced by the dynamics of the dollar and the FRS leaders’ statements, as investors try to assess the likelihood of increase of the key interest rate in the coming months. Higher interest rates usually bring pressure upon gold, bringing no interest income and usually becoming less popular with increasing borrowing costs. The two-day meeting of the FRS management will begin on September 20 and according to the traders the activity in the gold market will be restrained till it is over. “Till September 21 everything will be quiet and peaceful. We do not expect the key interest rate increase in September”, - says George Gero, RBC WealthManagement managing director. “But as the prospects of higher interest rates increase have not disappeared, the price growth remains subdued”, - he added. According to Gero, the recent volatility at the stock market has increased demand for gold. WSJ dollar index was recently reduced by 0.2% to 86.65. The weakening of the US currency usually supports gold denominated in dollars becoming less expensive for the other currency holders.
Source: Uncommercial joint ownership "Trans-regional Association  of precious metals producers"