Quotes of gold rose moderately, having played all previously lost positions today, helped by the weakening US dollar. At the end of the week yellow metal can fix the largest increase in five weeks.
Analysts say an uncertain economic and political prospects in the United States forced investors to buy safe-haven assets. Yesterday the head of the Federal Reserve System Yellen, in a conversation with former Presidents of the Central Bank, said that the US economic indicators point to the possibility of further interest rate rises. However, futures on interest rates Fed continues to point to less than 20 per cent chance of a rate hike in June. According to the minutes of the March meeting of the Fed, most managers do not expect the central bank raising interest rates at a meeting this month. Most economists surveyed by The Wall Street Journal in the last days, believe that the next Fed rate increase in June. Recall, higher interest rates have a downward pressure on the price of gold, which brings its holders to interest income and that is difficult to compete with the assets, bringing that income against the background of increasing interest rates.
“Yellen said that a further increase in Fed rates will be gradual market not expect four rate increase this year, which the Fed has hinted in December 2015.” – Said an analyst at LBBW Torsten Proettel. He added that it is still waiting for the falling prices of gold, as the positioning on the futures markets looks congested, while the inflow of funds into stock products shall be suspended. Data from the SPDR Gold Trust showed that this week’s gold reserves have not changed after the fixation of the first weekly outflow of the year last week.
Demand for physical gold from Asia has also been weak in recent years, analysts say.
April futures price of gold on COMEX today rose to $ 1240.7 per ounce.
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