Huge decline in the gold price by more than 1% take place in the market. In which the yellow metal at 12:01 NY Time recorded a decline by 1.31% to reach the level of $1366.60 USD/ Ounce. But why?
The gold price had passed by a lot of variables, and hard circumstances caused gold decline. One of the most important reason is the waiting of gold for the Fed meeting announcement tomorrow. The fed meeting announcement is going to be related to the quantity easing which the US market starts to get addicted on it. If the Fed announced by the end of it, we would watch a huge decline in the gold price.
One of the surprises pushed the yellow metal down, is the second day of gaining in the Asian market leaded by TOYOTA and SONY, TOYOYA gain more than 1.4% and SONY gained 4.4%, in a surprise for the Asian market. For sure we rewatch the flow of money away from the precious metal market and its head toward the Japanese stock market, for the second consecutive day.
The yellow metal is in the same narrow trading level between the level of $1370 and 1400 USD/ Ounce the market can get the next trend of trading gold after the announcement of the Fed tomorrow.
Gold investors had to go on today and to buy gold. The US market still in a need for the previous policy of quantitate easing, so there is an expectation that the yellow metal could rebound to the level of $1400 USD/ Ounce, and it will be the best time for gaining profit process to take place.