17.09.2014 - Traders are waiting for the Fed decision
The price of gold continues to consolidate near the levels of the previous days due to the expectation of a number of important events today and tomorrow. Thus, the course of trading may be affected by the data on the consumer price index in the euro area (09:00 GMT) and the USA (12:30 GMT). Also today, will be published the statement of the US Federal Reserve on monetary policy. It is expected that the volume of purchases of assets will decrease by $ 10 billion, to 15 billion. Moreover, investors will wait for hints about the timing of raising interest rates. Tomorrow will be held a referendum on Scottish independence. In case of Scotland leaving the UK demand for defensive assets like gold will increase substantially. We expect the resumption of growth of the price of gold in the medium term.
The price of Light Sweet crude oil rose yesterday on the background of a slight weakening of the dollar and the statements by the representative of OPEC. Thus, the general secretary of the cartel al-Badri said on the possibility of reducing the supply of oil to the world markets due to the tense situation in Iraq, where continues the confrontation between militants and government forces. We recall that the Iraq planned to increase the supply of oil to the world markets to 9 million barrels per day until 2020, but these plans can be unreal. On the other hand situation in Libya remains precarious. Traders await the Fed's decision, in which will be released forecasts on the economy of world's largest consumer of oil the United States. We expect an increase in volatility, and assume a possibility of further growth today, but keep medium-term negative outlook for oil.