Futures fell for gold during the European morning trade Thursday, after the Fed said that the status of the U.S. economy will get worse if the central bank did not begin the implementation of additional mitigation measures
Gold came under further pressure as investors to resort to the relative safety of the U.S. dollar amid growing concerns about global economic prospects.
In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for August delivery currently trading at 566.95, $ 1 per ounce during the early European trading, down 0.55%.
He had been dropped earlier by 0.65% to trade at the lowest level in the session at 1, 564.35 dollars an ounce, the lowest level since June 29.
The futures contracts for gold is likely to find short-term support at 551.35, $ 1 per ounce, the lowest price since June 29 and in the near term resistance at 1, 601.25, USD/Troy per ounce on Tuesday, the highest price.
Minutes of the meeting revealed the Fed’s policy-making for the month of June, which was published on Wednesday that only a small number of members of the Council believed that the purchase of more assets will be necessary, which disappointed gold traders ..
Others pointed out that there could be a reason to take further action if growth slows, and the risk of inflation will increase and is likely to not achieve the desired goal.
Supported only four officials of the Federal Reserve said more quantitative easing is necessary according to individual expectations, and supported two more facilitation, while two others said they would look into it.
And track movements in gold prices this year to a large extent the shift expectations about whether the U.S. central bank Sadh more money into the financial system.
Gold rose by 15% earlier this year to score 1790 a dollar an ounce) after it decided the Federal Reserve in January that he would keep interest rates near zero until at least late 2014 and pointed out that it can provide tour new asset purchases.
However, prices have fallen by almost 13% since late February, as the failure of the Fed to provide more facilities and amid fears of debt crisis deepening euro zone, which has fueled the demand for hedging of precious metals, and the dollar.
Minutes of the meeting reinforced the Federal Reserve the U.S. dollar. The euro fell to its lowest level against the dollar in two years new, while the dollar index, which measures the performance of the greenback against a basket of six other major currencies, its highest level since August 2010.
Gold has some of its appeal as a safe haven against the dollar and U.S. Treasury bonds in recent months, where the strength of the dollar makes the metal less attractive to buyers holders of other currencies.
In the meantime, waiting for the Chinese market growth data due out Am Friday, to measure whether China is moving toward stability or safe landing ..
The economic slowdown in China weaken the global expansion, which is already reeling because of the ongoing debt crisis in the euro area.
And increased concerns about global economic prospects after the official data on Tuesday that Chinese exports and imports in June slowed down in the previous month, which is heavier on global demand