Gold will continue to fall in price

Baku. 20 June. REPORT.AZ/ The price of gold in the world market fell to a one-month low. Report informs, cost of an ounce of gold for the last month decreased by 4% and is now traded at $ 1,248.

The fall in gold prices, coupled with an increase in demand for risky assets in global financial markets, is due to the Federal Reserve System (Fed) raising the discount rate in June. Analytical Group of Report News Agency believe, according to technical analysis of gold prices, they can not break through the mark of $ 1,300/ounce, as a result of which there is a sharp reduction in price of gold. Analysts believe that in coming months, prices may fall below $ 1,200 - up to $ 1,170 per ounce. Notably, now gold is sold for $ 100 or 8.7% more expensive than at beginning of the year.

Yesterday, June 19, chairman of the Federal Reserve Bank of New York, William Dudley, supported the decision to raise the rate, justifying it by the revival of the labor market and, as a result, acceleration of inflation. Today, June 20, chairman of the Chicago Federal Reserve Bank, Charles Evans, announced the need for a phased increase in the key rate, taking into account the pace of development of the US economy.

Against the background of statements by officials of the Federal Reserve System, US-dollar began to strengthen and gold fell in price.