The Fed Raise Interest Rates Getting Heavy

The Fed Raise Interest Rates Getting Heavy

Gold survives near the highest level of a three month after the daily hike of applyingbest during the last two weeks. The strengthening of the gold price up to early morning (4/2), had the support of views on global economic turmoil and deterioratingfinancial conditions, the U.S. Federal Reserve measures incriminating to raise the reference interest rate in the near future.

Gold get a blessing from the uncertainty as to when the Fed Rate will again be raised.This makes the safe-haven investments such as precious metals became more favoredby investors than other more risky assets, since the beginning of the new year 2016.Spot Gold is slightly corrected 0.16 percent to USD 1, 140.90 per troy ounce, up to looming post briefly touches on USD 1, 145.65. On the New York COMEX Exchange,gold futures contract for delivery in April rose 0.02 percent to 1, 141.60 Us dollars per troy ounce. Yesterday (3/2), bullion closed at 1, 141.30 Us dollars per troy ounce.

William Dudley, as the President of the Federal Reserve of New York who is alsoserving as Vice Chairman of the FOMC, said the financial condition of the U.S.increasingly was squeezed since the Fed raised interest rates in December, according to a report from MNSI. Dudley also reminded if the condition continues it will burdenthe Fed. The comments are directly dragging down the dollar and adding toexpectations the market participants that the Fed might not raise rates again in March.

BMI Research contend for gold this year are increasingly likely to move between 1.000 and 1.200 u.s. dollars, instead of the depressed under USD 1.000 as had been previously thought. "Next month, the Federal Reserve would maintain a loose policy unlike the previous forecast, because of the global economic conditions that forced officials to postpone the monetary tightening plans until the second half of 2016.0" said BMI was quoted as saying from CNBC.