According to the auction, the December futures for gold on the new York stock exchange Comex rose in price to 1179,90 USD per Troy ounce amid expectations the deferral of the increase in the base rate due to disappointing domestic data statistics.
MOSCOW, 28 Oct. Gold prices remain positive on Wednesday, as investors expect the fed delay raising the base rate due to disappointing domestic data statistics, according to AFP.
As at 18.10 GMT December futures for gold on the new York stock exchange Comex rose in price by $ 14, or 1.2%, to 1179,90 dollars per Troy ounce. The cost of December futures for silver grew at 2.79% to 16,31 USD per ounce.
The next fed meeting takes place on October 27-28. The members of the regulator will announce its rate decision and monetary policy at 21.00 GMT. Politicians have repeatedly stated that the rate increase will depend on economic data indicating the U.S. economy is strong enough to withstand higher borrowing costs.
However, analysts expect that the regulator will keep the base rate at its lowest level and will postpone tightening monetary policy until 2016. Their expectations reinforce the weak data on the labor market of the country, retail sales and investment in durable goods. All these data suggest a slowdown in economic growth in the third quarter.
“The market has accepted the idea that the fed would move if the data will contribute to this, but the data did not meet the expectations of the (fed — ed). The market does not believe that the criteria for the rate increase will be achieved”, — said the publication The Wall Street Journal, Director of metals trading for High Ridge Futures in Chicago Dave Meger (Dave Meger).