Baku. 1 March. REPORT.AZ/ In the last 3 days price per ounce of gold in world market fell by $ 20 or 1.6% up to $ 1243.
Report informs, the reason is probability of rate increase by Federal Reserve System (Fed) at next meeting to be held on March 14-15.
Thus, on February 28, New York Fed President William Dudley and San Francisco Fed President John Williams said there is reasonable basis to increase interest rate at the meeting in March, and they seriously support it. Also speaking at the last day of Congress, US President Trump voiced opinion about increasing spending and reduce taxes that increased possibility of raising interest rates in terms of preventing acceleration of inflation.
Analytical Group of Report believes, price of gold will continue to fall and may drop to 1050 USD in 1 year. Because Fed's decision to increase interest rates by 2-3% means a reduction in demand for the precious metal.