Gold is still under pressure of the Fed's rates expectations. On Monday, prices for the precious metal continued to decline, traders and investors are preparing for today's speech from the Three Fed officials: Tarullo, Evans, Williams.
At today's tradings on the Mercantile Exchange Comex in New York, gold futures for December delivery fell by 0.72% to $1137.30. At the end of Friday's session, the December contract lost 0.71% and dropped to $1145.60 per ounce. Futures' level of support is expected at $1133.00, on minimum of 24 September, resistance level - $ 1155.90, maximum of last Thursday. This fluctuation was caused by speech of the Head of the Federal Reserve Janet Yellen, who said that the US central bank could still raise interest rates this year. Her words were able to convince traders that there are no changes for the monetary policy. Earlier in September, the Fed decided to maintain the current level of rate unchanged. .
The current waiting period of interest rate raising very negative effects on gold, because precious metal do not have the strength to compete with earning assets during the growth rate. In addition, Friday's data on the US economy showed high growth rates during three months to June, against the background of weak expectations. According to reports from the US Department of Commerce, volumes of the US economy grew by 3.9% from April to June. This value is higher than predicted 3.7%. Increased of consumer spendings also increased from 3.1% to 3.6%.
Silver futures with a similar delivery in December fell by 1.26% to $ 14,905 per ounce, also there has dropped the price of copper futures: 0.36% to $ 2.275 per pound. Source: investing.com