A growing expectation in the global market by the end of the Assets program purchase. According two of the most famous banks in the world Scotia and standard Banks, they expect that the gold price is going to decline after the end of the of the committee meeting.
Their expectation means that the Fed is going to end the Assets program soon, the issue which will put more pressure on the gold price, but why?
In the case of ending the Assets program purchase, the Fed is being say that, the US economy is recovering. By the recovery of the US economy, we will watch the flow of the cash toward the US stock and its heading away from the precious metal market. the issue which could make more pressure on the gold market. It is expected by the end of Assets purchase program, to watch gold price hack below the level of $1300 USD/ Ounce.
We are watching a short covering process in the market before the Fed announcement. The short covering process was pushed by two other reason.
The first reason was coming from Europe, in which Burgin hunter from Europe decided to enter the market today. Especially after support from the strength of the EURO VS USD, the issue which encourage investors to reinvest in the gold market.
There was a second reason it was about the weakness of the Asian market the second direct reason pushed investors to return for the precious metal as the safe haven from the fluctuate of the Asian stock market.
The Fed announcement is going to be very important for the investors it is going to determine for the investors if they are going to reinvest in gold or they are going to head for the Stock market. The accepted trend for gold price by the end of the Assets purchase program is going to be a down trend. The yellow metal will hack below $1300 USD/ Ounce, but what next, The next direct support level will be $1280 USD/ Ounce of gold and then $1260 USD/ Ounce of gold. After this gold will be inside a narrow trading level between the level of $1260 USD/ Ounce and the level $1300USD/ Ounce.