On Wednesday, gold price fell in the European market with a continuous 3rd loss in the last 4 days. The investment demand showed a significant amount of decrease for gold. The recent move was following the decisions of Federal Reserve at the end of its monitory policy meeting. The agency is expected to include clear evidence of U.S interest rate cuts during current year. It is noteworthy that gold prices declined by 0.3% to trade at $1,342.45/ ounce from the opening level of $1,346.36, and recorded a high of $1,347.51 and a low of $1,341.80. Gold prices were increased yesterday by 0.6%, after 2-days of losses in correction from a 14-month high of $1,358.14 an ounce.
The price of the precious metal is currently declining, as investment demand for safe assets slows. The investors’ relative risk appetite improves, reflected by the rise in most global equity markets. The relative improvement comes following growing hopes of resolving trade disputes between the United States and China during the meeting. It would bring the U.S President Donald Trump together with Chinese President Xi Jinping on the sidelines of the G20 meeting in Osaka, Japan during next week. The Federal Reserve will conclude its meeting on monetary policy appropriate to developments in the U.S economy yesterday, following full prospects for U.S interest rates to remain unchanged at 2.50%.
The U.S Interest Rate, Monetary Policy Statement and Quarterly Economic Outlook were released by the Federal Reserve Chairman Jerome Powell. A number of Investors are seeking for new evidence for the future of U.S interest during current year. There are powerful prospects that the Federal Reserve will cut interest rates to counter the risks surrounding the economy, especially the U.S trade wars against several countries within the country. The gold holdings in the SPDR Gold Trust Fund (The world’s largest gold-backed fund) remained same for the 2nd day in a row, with the total remaining at 764.1 metric tons, which is the highest level since 3rd April.