Wednesday, January 27, 2016

The PRICE of GOLD Soaring Spot: January 27, 14.9 Points to as low as US $ 1,178, 06

Gold Futures on the COMEX Division of the New York Mercantile Exchange ended higher on Tuesday (Wednesday morning EDT), after the us dollar showed attenuation.

The most active gold contract for February delivery rose 14.9 u.s. dollars, or 1.35 per cent, being settled at 1120.2 u.s. dollars per ounce, the Xinhua report. Precious metals gained support when the U.S. dollar index down 0.12 percent to 99.16 at 18:00 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar usually move in opposite directions, which means if the dollar rises then gold futures will fall, because gold is measured by the dollars become more expensive for investors.

Gold is prevented from rising further because the index of the U.S. Dow Jones Industrial Average rose 1.83 percent at 18:00 GMT. Analysts noted that when equities registered a loss then precious metal usually rises, as investors seek a safe place, while otherwise when us equities registered a profit then the precious metal usually go down.

The Federal open market Committee (FOMC), which sets out the policy of the U.S. Federal Reserve began a two-day meeting on Tuesday, providing further support for the precious metal, as the traders berspekulkasi that The Fed would indicate interest rate increased caution after the uncertainties of the global economy. Analysts believe the market is still not sure when the next rise in interest rates, from a level of 0.50% to 0.75 percent level will take place. The traders are betting that, at the start, The Fed will raise the tribe from 0.50 to 0.75 percent percent over the March FOMC meeting.

The current implied probability for Ascension tribe bungan from 0.50 to 0.75 percent percent was 30 percent for March, and 13 percent for the January meeting. A report released by The Conference Board, based in New York to prevent gold from rising further because consumer confidence showed the importance of size up to 98.1 in January, which analysts note better than forecasts. Traders will carefully monitor releases gross domestic product figures from the U.S. Department of Commerce on Friday for clues about America's economic performance in the last quarter.



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