Gold prices were seen slightly rising on Monday, bouncing back from a seven-month low as the market focus on the Federal Reserve’s rate decision as the central bank prepares for its two-day policy meeting scheduled for September 16-17.
Futures for the yellow metal fell by 3.1% last week as the US dollar strengthened and reports revealed that sales in US retail rose to its highest in fourth months in August. Silver futures for immediate delivery was little changed at $18.6507 an ounce in London after it fell to $18.4675 on Friday, the lowest since June 28.
Gold prices for immediate delivery added 0.4% to $1,235.09 an ounce in London, according to Bloomberg generic pricing, while Bullion for December delivery rose 0.3% to trade at $1,235.50 on the Comes in New York.
Fed Meeting
This year, the metal has declined on signs that the world’s largest economy is strengthening, which could persuade the Federal Reserve to increase interest rates sooner than expected. On Wednesday, the US Federal Reserve will make its rate announcement after ending a two-day policy meeting which begins tomorrow. If Fed policymakers decided to raise rates, gold prices could fall further.
As tensions between Ukraine and Russia eases, gold prices continues to fall after a ceasefire agreement between the nations took effect over a week ago. However, according to reports, there are still fighting in some regions of the country as US Secretary of State John Kerry is expected to meet Russian Foreign Minister Sergei Lavrov later in the day.
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Over in Scotland, the country prepares to vote on Thursday for independence from the United Kingdom. If the event of a Yes vote, the event is expected to weigh on currency markets and could leads to investors to move to move to gold.
The post Gold Retreat from 7-Month Low; Fed Meeting In Focus appeared first on | HY Markets Official blog.
