Gold Price In The Pressure Point

Gold prices were down at the close of trade Wednesday on Wednesday (16/12) ahead of the US Federal Reserve meeting which is expected to raise interest rates for the firsttime in nearly a decade.

The drop in the gold price occur due to return to the dollar against a basket ofcurrencies after data showed a rise in inflation in the United States last month.

The Federal open market Committee (FOMC), the Central Bank will announce the increase at the end of a policy meeting on Wednesday, but have hinted that they intend to raise the tribe gradually for the next.

The price of spot gold was down 1 percent at 0.2, 060.60 dollars per troy oz. While the price of U.S. gold futures for February delivery also dropped 0.2 percent at 1, 061.60 dollars per troy oz.

The price of gold has fallen 10 percent this year, mostly because of expectations of a U.S. interest rate increase. With interest rates rising will increase the opportunity costof holding gold assets rather than flowering.

"Consensus is The Fed will eventually push button to raise rates tomorrow," said AvaTrade Chief market analyst Naeem Aslam yesterday. "Gold traders, however, did not feel any panic."

While the prices of other precious metals, like Palladium spot price rose 3.1 per cent at $ 561.48 per ounce. The price of silver rose 0.5 per cent at $ 13.77 per ounce, after a six-day streak brought it to the lowest position in August 2009, while the price of Platinum rose 0.7 per cent at $ 854.45 per ounce.

Yessnews Center estimated the price of gold is still potentially weakened by theimminent U.S. interest rate rise plan this week, which would further increase the u.s. dollar. It is estimated the price of gold would try to penetrate the Support level 1051-1057, and if the price rose will try to break through Resistance level 1063-1065.