On Thursday gold prices has backed down in Europe market to continue its losses for the second day respectively, because of USD increasing against the international currencies, after the federal reserve decisions about raising interest prices for the second time during this year, additional to the announcement about the details of decreasing the budget plan during this year.
At 9:55 GMT the gold prices has backed down to the level 1258.30 USD for ounce from the opening level 1260.49 USD, and record the highest level 1266..50 USD, and the lowest 1257.26 USD.
Gold prices have ended yesterday trading with a decreasing by 0.5% and recorded the lowest level in three weeks 1257.07 USD for ounce, because of the decisions and the monetary policy of the federal reserve report.
USD index has increased by more than 0.4%, reflecting the acceleration of buying the USD against the international currencies, especially the low-profit currency EUR and JPY, and that’s affected negatively on gold prices as it supported with USD, and it cost increases for other currencies holders.
At the end of the two days meeting the federal reserve decided to increase the American interest prices for the second time during three months by quarter percent at the range 1.0%: 1:25%, and didn’t announce about an expectation will increase it for the third time during this year.
The federal reserve increased the interest prices for the first time during this year in March meeting by quarter percent at the range 0.75%: 1.0%, and said about raising the prices for another two times during 2017.
And the federal reserve said the monetary policy report that the economy is growing moderately, and the market getting stronger, and the inflation backing downs down in country is just temporary, and the Federal Reserve President Janet Yellen said she trust the American central that on its way to achieving the inflation target at 2%
And the federal reserve agreed about increasing the interest prices for the third time during six months with keeping their expectation about another increasing during this year, and the federal announce about details of decreasing the budget plan which is 4.5 billion dollars from the financial papers supported with mortgages real estate bonds.
Gold holdings are in SPDR Gold Trust the biggest international index boxes supporting with gold has decreased yesterday by -2.13 metric tons, and that’s the biggest daily losses since the first of December 2016 to the total 854.87 metric tons, and that’s the lowest level since 6 of current June.