Now it is on the lowest since the last February. Meanwhile Fed is talking about three more interest rates hikes in the next year.
Gold has reached its lowest number since February this Thursday, following the Federal Reserve decision on the interest rates.
American dollar is on its highest peak in the last fourteen years.
Fed has lifted the interest rates by 0.50-075 percent yesterday and it changed the situation on global markets, as well inside the country. Combining with the expectations that Trump will cut taxes and boost industry, it created a new reality with the high dollar and low prices for gold.
Gold reached 10 months lowest number, and stopped at 1,132.15 dollars for an ounce. And by the 10:30 GMT it moved, losing 1 percent. Now it costs 1,132.70 dollars per ounce.
American futures for gold on February were equal to 30.30 dollars, 2.6 percent, which is lower on 1,133.40.
According to the analyst from the UBS, Joni Teves, the first interest rates hike was much awaited, so the markets expected it. These changes to the market and gold in particular were brought by the Federal Reserve decision to make another three more hike in the next year.
Joni believes that gold is under the obvious pressure from dollar and yields. Teves suggest being patient and waiting for the changes in yields numbers. While yields are high, gold will have hard times.
Gold is falling and losing its price since the USA has chosen the Republican nominee Donald Trump as their president.