Gold Update This Week

The Federal Open Market Committee FOMC) increase the amount of the limit US interest as much as 25 basis points to 0.25 to 0.5 percent, ending a long debate about the readiness of the state of the U.S. economy in the face of higher loan interest rates. Although the decision of the Federal Reserve is removes overhang on gold prices, focus is shifting to how quickly the US Central Bank will raise interest rates again in the future.

The metal was sinking almost ten per cent during the year 2015 is largely due to the uncertainty of the determination of the time of the increase in US interest rates and worries about the market that high interest rates will reduce demand on assets no berimbal as result of gold. Spot gold dims 0.47 percent to 1,067.55 U.S. dollars per troy ounce. Last night, has experienced a rally ahead of the determination of the federal funds rate and managed to maintain most of the price gains after the Central Bank statement and closed up 1.2 percent.

"The movement of gold has extraordinary sensitive to changes in monetary policy for months. Interest rate hike finally can delete the uncertainty of bullion for immediate market," said James Steel analysts HSBC quoted from CNBC. Investors have improve short-covering trade gold to approach the record highs, although today has been declined. The dollar surged almost one percent against other major currencies major, as one of the factors that can limit the short-covering.