14.09.2016 - Potential of gold reduction has fallen
The price of gold drops on a background of the closing of long positions ahead of the Fed statement on monetary policy next week. Investors fear hawkish mood at the Fed, which will lead to raising interest rates this year and will reduce the attractiveness of gold compared with assets that generate interest income. On the other hand, support for the precious metal prices may be a drop on the stock markets, which will increase the interest in gold, which is considered as a safe haven in times of stock market volatility. Our medium-term outlook for gold remains positive with potential targets at 1400-1430.