Forecast: Price for an ounce of gold could down below 1,000 USD

Gold prices dropped from support level of 1 150 dollars/ounce to 1100 dollars/ounce

Baku. 24 July. REPORT.AZ/ In recent days, the price of gold due to the predominance of the market sales dropped from support level of 1 150 dollars/ounce to 1100 dollars/ounce. Technical analyst at French bank BNP Paribas, Nicolas Hanna believes, the probability of reducing the cost of gold broke through the level of 1 150 dollars / ounce, up to 1050, and 1 000 dollars / ounce in the near future is high.

Last time gold was sold at the price of 1100 dollars / ounce on March 15, 2010.The price of gold reached the peak on August 29, 2011 - 1911 dollars/ounce.Today, gold sold 800 dollars / ounce less, or 42% below its historical maximum mark.

The main reason for the decline in gold prices are expectations of an increase of the discount rate of the Federal Reserve System (FRS).Raising interest rates will cause the inflow of global funds into US government bonds, which will lead to a reduction of liquidity in the international financial markets.As a result, along with gold, other precious metals and commodities are projected to decrease.

The index calculated by Bloomberg commodity assets fell to its lowest value since 2002. The reason is the fall in prices for August futures, ie futures contracts for WTI crude oil below 50 dollars/barrel, a sharp drop in gold and precious metals. Analysts at the US company's Precious Metals & Mineral Fund Denbou Deng said that the growth cycle of commodity assets ended:"Currently, supply exceeds demand, the main reason is China's economic slowdown."

CCES Crosby of Prudential Financial said that demand from China over the last decade was the reason for the increase in commodity prices:"Now, weak GDP growth in China contribute to lower prices."

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