Technical analysis and trading recommendations - https://fxpcm.com/en/fx/xauusd-price-broke-mark-130000-ounce-16062016
Political and economic uncertainty in the world, slowing or weak growth economies of China, the euro area and elsewhere, increased turbulence in financial markets, the uncertainty in relation to the UK future in the EU and the euro area, as well as mixed labor market indicators in the US in May, supported by demand for gold as an asset of refuge.
This morning the price and the spot has broken the psychologically important level of $ 1300.00 an ounce after the Federal Reserve on Wednesday left US interest rates unchanged.
Statement submitted by the Fed after the two-day meeting, indicates the tendency to soft policy. The leaders of the central bank also lowered the forecast for increases prospects for short-term interest rates in the coming years.
By the end of 2016, according to the median forecast of 17 Fed leaders, the federal funds rate will be 0.875%, by the end of 2017 - 1.625%, and the end of 2018 - 2.375%. Earlier it was planned increase of the rate to 3%. In the long term, the Fed believes that the key rate will rise to 3% rather than to 3.25% as expected in March.
While Fed Chairman D.Yellen called each subsequent meeting of the regulator "alive", hinting at the possibility of a rate hike, the more likely date for a rate hike, according to market participants, it is September.
Lower interest rates are positive for gold as investment in the precious metal do not bring dividends. At a same high interest rates it is more difficult to compete with the assets, income, for example, such as US Treasury bonds.
Growth rates it is likely to continue. Some market participants expect the price of gold could reach $ 1,400 an ounce by the end of the year.
Therefore, in the current situation the most appropriate submitted to long positions on gold