On Tuesday 15th September 2015 Gold was trading lower by 0.32% at £716.58 an ounce with the price expecting to trade in a narrow range ahead of the US Fed Reserve’s two day meeting starting 16th September 2015. As a result, investors remain guarded ahead of this week’s Federal Open Market Committee meeting, which could result in increased interest rates.
Gold prices are near a one-month low with £1.68 billion leaving Gold ETFs (exchange traded funds) as market participants wait to hear what the U.S central bank members have to say on Thursday 17th September 2015. The fact that there is no general consensus on whether the Fed will raise rates has created some concerns with investors, as Gold has benefited from ultra-loose monetary measures and historically low interest rates, which means that any change in the Fed’s policy will affect gold prices.
Amid economic problems in China there are concerns over a serious slowdown in the world’s second largest economy which is expected to provide a a catalyst, for gold price in the coming months. William Adams head of research at Fastmakers told the Wall Street Journal “Giving continuing concerns over China, the fallout in emerging markets, and a likelihood that the Fed will stay on hold as it does not wish to rock the boat, we feel gold will remain well supported.” The basically means that despite the ever-present geopolitical, macroeconomic, and monetary risk, gold will continue to draw investors.