Most of what happened to the gold depending on how aggressive the tightening cycle of the Federal Open Market Committee will provide the signal, whether policy makers to raise the level of interest rates as expected. The U.S. dollar is more powerful and inflation forecast weaker than that has been pressing gold prices, although the precious metal a rise ahead of the results of the Fed.
With the Federal Reserve likely to raise the level of interest, the U.S. dollar will rise and gold will be depressed. The discussion of the speed of the increase in the interest rate can increase market volatility. The more slowly increase the level of interest rates will provide support for gold prices, especially if the U.S. dollar sold based on the news.
As the alternative, the speed of the increase in the interest rate that more aggressive can lead to speculation that the Fed forecast inflation a problem. This possibility can add market expectations for inflation and may lead to support for gold.
Gold prices in tradingkan rose more in high solid and approaching the height during the session in the morning on Wednesday. A selloff and the position of the night in the futures markets and bargaining chip in the Cash Market is estimated to occur ahead of the FOMC statement and press conference from the governor of Fed Janet Yellen. Many merchants gold considered the gold market will showcase the scenario of "sell rumors and buy the fact" about the possibility of the increase in the interest rate the Federal Reserve night in
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