Gold, Silver to take direction from Fed policy on Wednesday
London (Apr 25) The direction of the gold and silver market this week is likely to be determined by monetary policy decision by the U.S. Federal Reserve on Wednesday 27 April, according to the report by broking firm Enrich Commodities.
From the report:
“The bullion market continued for gold slightly gain 0.2% closed at 29021 and silver for a third week in a row as silver finished the week closed at 39985 trading range between 38150 -41421 the bullion are not sustain on higher level because US Dollar strong gains in against the Euro and Japanese Yen on Friday.
Last week, the ECB policy meeting concluded with no change to policy, even though the Euro has slightly devaluated against the USD. The USD has also gained some strength against the Japanese yen. The stronger USD may have contributed to the modest fall of gold prices.
The U.S. dollar correspondingly rose and that was just piling on when it came to gold prices. The stronger dollar brought gold down about half a percent while regular trading was knocking it back about 1.25%.
The regular trading in gold was governed by fear of a Federal Reserve rate hike, which would be one of the most surprising moves in the Fed’s recent history. Another fact, not to be discounted, especially last trading day Friday, is profit taking, gold hit a five -week high.
Silver’s retail demand is started rally was expected and hits 11months high. As technical expert of Enrich Commodities Mr. Sunil Kumar have said in last week report silver target was 40000, and now weekly close at 39985 weekly high 41421. Like everyone else traders wanted to take some profit booking of their positions.”