Baku. 25 September. REPORT.AZ/ The world price for gold is predicted to drop to $ 1,199 / ounce by the year end.
Analytical Group of Report News Agency informs, the reason for decline in gold will be the factor that the US Federal Reserve System (Fed) will begin to decrease its balance since October and increase probability of raising discount rate in December.
Thus, during its last meeting on September 19-20, Fed has decided to decrease its balance by $ 10 bln a month from October 1. Meanwhile, due to the acceleration of inflation and economic growth, analysts have raised the probability of increasing the Fed’s rate in December at 62%. Notably, this indicator was 22% on September 8 and 50% before the meeting.
As a result, gold price started to fall.Gold sold for $ 1,362 / ounce on September 8, decreased by 4.7% and now it costs $ 1,298/ounce. Earlier in the year, the price of per one ounce of gold was $ 1,150. At present, gold is sold for $ 148 per ounce or 12.9 % higher compared to the beginning of the year.
Analytical Group says sales can be accelerated if the price of gold drops below $ 1,200/ounce: "However, this process is expected to begin in the second half of 2018. By 2020, gold is expected to drop to $ 800/ounce against the backdrop of the rise in interest rates on global financial markets”.