Gold falls in price moderately ahead of Fed meeting

The price of gold fell slightly on October 21 morning, while the dollar strengthens as the November meeting of the US Federal Reserve System (FRS) approaches, reported from the auction data.

The price of December futures for gold on the New York Comex exchange fell by $11.45, or 0.7%, to $1,625.35 per troy ounce. December silver futures fell 1.12% to $18.48 an ounce.

The main attention of the financial markets, which in many respects include the markets of precious metals, is drawn to the future policy of the Fed. According to data provided by CME Group, 98% of experts predict that in November the Fed will raise the discount rate again by 0.75 percentage points, now to 3.75-4% per annum.

The dollar, which is strengthening, can negatively affect gold. Its rate is now growing against other major world currencies, and the dollar index (the rate against a basket of currencies of six US trading partners) is increasing by 0.14%, to 113.04 points.

A more expensive dollar reduces the demand for gold, which in this case becomes less accessible to investors holding other currencies.





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