Gold prices drop on uncertainty over the timing of a rate hike by the fed

Gold prices drop on uncertainty over the timing of a rate hike by the fed


According to the auction, the December futures for gold on the new York stock exchange Comex became cheaper to 1169,80 dollars per Troy ounce on the uncertainty on the timing of a rate hike by the fed.

MOSCOW, 19 Oct. Gold prices lower on Monday on uncertainty over the timing of a rate hike by the fed, according to AFP.

As at 17.51 GMT December futures for gold on the new York stock exchange Comex became cheaper to 13.30 dollars, or 1.12%, to 1169,80 dollars per Troy ounce. The cost of December futures for silver fell on 2,23% to 15,76 USD per ounce.

Last week it became known that the index of consumer sentiment University of Michigan (Michigan Consumer Sentiment Index), reflecting the degree of confidence of households to the U.S. economy in October, according to preliminary estimates, increased to 92.1 per item from 87.2 points in September. Statistics were better than analysts ‘ forecasts (89 points) and renewed expectations of some investors that the fed rate will be raised before the end of this year.

Traders and analysts believe that the role of the metal as a safe asset has decreased in recent years. Gold prices are likely to fluctuate in the waiting period of when the fed will begin to raise rates.

“Gold is trading as a conductor expectations of interest rates in the United States. Investors looked at gold and expecting it to be a safe asset, but it has not become”, — the newspaper cites The Financial Times, the words Barclays analyst Kevin Norrish (Kevin Norrish).