Gold prices stables at lowest level in three weeks before FED meeting

On Tuesday the gold prices have stables at the Europe market in a limited range of trading near the lowest level in three weeks, and the investors have kept away from building a new centers, before the federal reserve meeting get started, and the expectation is to submit a new evidence about increasing the interest prices for the third time during this year, and about the time for starting decreasing the budget.

At 9:30 GMT gold prices are trading at the level 1307.65 USD for ounce from the opening level 1305.78 USD, and record the highest level 1309.82 USD, and the lowest 1305.75 USD.

Gold prices have losses yesterday by 1%, in second daily losses respectively, record the lowest level in three weeks 1304.64 USD for ounce, because of recovering the USD levels, and the American shares indexes had increased in Wall Street to new standard levels.

Gold prices have decreased the last week by 2%, in a first weekly losses during one month, and biggest weekly losses since the last of April, because of slowing down the investment demand for the Safa assets especially gold, silver and JPY, at the same time with increasing the probability of tightening the monetary policy in Britain and Europe.

Today the open market committee in federal reserve session will start its periodic meeting to discuss the monetary policy which fits with the American economic development, and the decisions will issue tomorrow Wednesday, and the expectation about the interest prices is to be stable without any changes at the range 1.25%.

The Council had raised interest rates twice this year during the March and June meetings and confirmed its confidence in the country’s economic growth path. He noted that the price increase for the third time this year under the strength of the work market, And the inflation has backed down temporary in the country.

During the previous meeting on July 25-26, the Federal Reserve kept interest prices without any change mentioned in the range 1.25%, in line with most of the financial market expectations, and indicated that the decreasing in the budget would soon start.

The Federal Reserve said inflation levels were still far from the targets even as the economy gets closer from the stage of prosperity and said that short-term risks of the economic expectation were almost balanced and that the committee was continuing to follow inflation indicators.

Most expectations suggest that the current meeting will provide clear evidence of increasing the interest prices for the third time this year, especially after the country’s inflation levels improved in August, with the announcement of a reduction in the balance sheet of 4.5 billion treasury bills and mortgage-backed securities Real Estate.

Gold holdings at the SPDR Gold Trust Box the biggest international indexes boxes which are supported with gold has increased yesterday by 5.32 metric tons to the total 843.96 metric tons, and that’s the highest level since 3 of last July.