Price of Gold fell just before the FED meeting, which is tomorrow at 20:00 (our time). Investors closed their long positions. Small amount of investors think that FED will move interest rates higher during this meeting, but some of the latest data from the econonomy shows more positive signs and this may put the rise of the interest rates back in focus and possible rate hike later in the year. The chances of rate increase in the beginning of this year were slim to none, however now the percentage has increased. If we expect rate hike, this will for sure impact price of Gold negatively. The price of Gold had a good run up from its bottom during December 2015, but that increase is due to the low pace of growth of the global economies and the low rate of inflation.
Jr. Trader – S. Fuchedzhiev