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Forecast: Gold price will continue to decline

Over the past 4 years the price of gold fell by 40%

Baku. 16 July. REPORT.AZ/ After yesterday's speech by US Federal Reserve (Fed) Janet Yellen, gold on the world markets began to fall in price. She reaffirmed the US intention to raise interest rates in 2015, and thus put an end to the issue of increasing interest, which became for a long time the cause of disputes.

Report informs, currently in the US discount rate makes 0-0.25%. J.Yellen touched the foreign risk factors, as well as problems in China and Greece, but noted that, they would not affect the US economy. The Fed believes that the global economy will continue the trend of growth, which will further strengthen the US economy.

Chief analyst of Daniels Trading, John Payne in his interview with The Wall Street Journal pointed out that, gold is the main indicator of the growth: "Therefore, in the near future, the discount rate will be increased."

The increase in investor interest restricts the use of credit, and it has a negative impact on the price of gold. Another factor that reduces the price of gold, is the strengthening of US dollar.

According to the analysis of the analytical group Report, if the price of gold on the international stock exchanges fall below 1,130 USD per ounce, the price may down to 980 dollars. If there is a lack of buyers, the price of gold may fall to 700 USD an ounce.

Currently, an ounce of gold sold for 1146 US dollars. This is less than the historical maximum level of 29 August 2011, by 40% or 765 USD/ounce, when the gold price was 1911 USD/ ounce.

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