After the FOMC announcement, yesterday, we watched a declining rush for the precious metal price. The yellow metal lost today 4% it is an action we did not use to watch it a lot.
The FOMC announcement yesterday supported the Stock market at USA and the US Dollar. Because of the FOMC announced about a plan concerned about the end of the Assets purchase program. The end of this program indicates a recovery of the US economy faster than expected. After the investors know that, the US economy is going to recover they returned back to invest in the US stock market strongly. As a result, we watched a decline in the global Stock market, starts by London shares declined by 2% during one day trading while Germany stock declined by 2.68% and France walked over the same photo steps and declined by 2.77%.
Asian market fell today after a weak manufacturing data released today, caused the decline of Asia pacific market by 1.4% while the other hand New York Stock market starts to reduce its losses to record 1.13% instead of 2.9%.
The previous ideas showed the strength of the US economy, the issue which supported the weakness of the yellow metal price and caused its decline to the level of $1291 USD/ Ounce.
The precious metal changed his previous narrow trend which was between $1370 and $ 1410 USD/ Ounce, and choose a new narrow trend between the average of $1280 and 1320 USD/ Ounce. The yellow metal said its word and choose the down trend. Investors expect that the new trend of gold is temporary level, and they expect Burgin hunter to be seen in the market soon. Specialist expect that the gold price will return to its average level soon, based on the mining cost which had been increased they said that the cost / Ounce will reach $1350 USD/ Ounce as a row ounce of gold. So they said that, within we are going to watch a collapse in the gold price and the yellow metal will lose its value or it will rise over $1550 USD/ Ounce by 2014.
Pessimistic look on the US economy from an Asian resource refused to mention his name the US economy cure is a temporary cure and the global market will return to gold as the safe heaven, and we are going to watch a rise in the gold price by 2014 to the level of $1400 USD/ Ounce of gold.