A better movement for the yellow metal was posted by the weakens of the US Dollar in front of the Euro. The Burgin hunter from Europe decided to enter the market, especially after the weakness of the precious metal during the last month. Gold market recorded a decline in the last month by 1.78% European Burgin hunter decided to enter the market, the issue which increase the fears from the Fed committee result and indicate that the Fed is not going to end its policy today.
The global markets are now waiting for the Fed policy decision and announcements from the U.S. Federal Open Market Committee at 1800 GMT, which will be closely pedantic by the market. The Fed’s quantitative easing program has been an issue of support for the precious metal over the past year.
Any news about the end of buying Assets from the Fed, an issue will face the precious metal, and it may send it to the level of 1200 USD/ Ounce. If the Assets program is going to continue, we will watch short covering process will take place in the market.
At 0833, GMT, spot gold was 0.5% higher on the day at $1368 USD/ Ounce. Most of The traders had bought the metal at low prices after concerns over the longevity of gold positive expected movement because of the U.S. economic stimulus pushed the precious metal 1.6% lower the last month. While they are expecting that, the Fed will not end the program today.