According to the auction, the December futures for gold on the new York stock exchange Comex became cheaper to 1134 USD per Troy ounce amid investor concerns that the fed may raise base rates this year.
MOSCOW, 2 Nov. Gold prices drop on Monday evening amid fears of investors about what the fed can raise the base rate this year, according to AFP.
As of 18.14 GMT December futures for gold on the new York stock exchange Comex became cheaper by 7.3 million, or 0.65%, to 1134 dollars per Troy ounce. The cost of December futures for silver fell by 1.62% to 15,32 USD per ounce.
The price of gold in the summer fell to a five-year low due to expectations that the fed will raise interest rates, but in September the regulator has kept them at the same level. Last Wednesday the U.S. Federal reserve again kept its base rate at a minimum level of 0-0. 25% per annum. The fed did not rule out a rate hike in December, depending on employment and inflation.
Estimated analysis FedWatch CME Group, the likelihood of a base rate increase in December is 47%, in January to 55% in March to 69%. Most investors hope that the fed still will postpone the rate hike until 2016.
“The fed comments have led to a sharp decline in the value of gold. Our US economists still expect a rate hike will be delayed until March 2016. If we see that their expectations are met, it may support the gold price”, — quotes Agency MarketWatch the opinion of the analysts of Barclays.