Gold: an overview of the market situation

Gold prices declined moderately today , registering with the decline in the fourth session in a row, which was associated with the strengthening of the dollar. We also add that the lack of clarity regarding U.S. monetary and fiscal policy has led to a decrease in demand. Recall that last week, the Federal Reserve surprised markets by saying that there will be revenge while reducing the amount of asset purchases , confounding expectations for a slight reduction experts . This decision led to a sharp rise in gold prices , but renewed concerns that the Fed may resort to a reduction in the program as early as next month, contributed to a marked decline , which is almost offsetting the early growth .

We add that the head of the Federal Reserve Bank of New York William Dudley said the U.S. central bank may further reduce its support for the economy at the end of this year, while the head of the St. Louis Fed President James Bullard said the incentives can be extended in October , but everything will depend on the economic data.

It should be noted that in the course of today's trading is also influenced by the U.S. data , which showed that house prices have continued to increase in July , although a somewhat slower pace than in previous months.

According to the report S & P / Case-Shiller, home prices in 10 major U.S. cities rose by 12.3% in the year ended in July. The housing price index S & P Case-Shiller 20-city U.S. in July rose by 12.4 % y / y , slightly weaker than expected growth of 12.5 % y / y It should be noted that the report was expressed caution about the prospects for house prices.

Meanwhile , another report showed that consumer confidence Conference Board, which increased slightly in August , fell in September. Index is currently 79.7 (1985 = 100 ) compared to 81.8 in August. The current conditions index rose to 73.2 from 70.9 . The expectations index fell to 84.1 from 89.0 last month.

Also today, it was reported that gold holdings in SPDR Gold Trust fell 0.1 percent on Monday , in connection with which the total outflow for the year rose to 440 thousand tons.

The cost of the October gold futures on COMEX today dropped to $ 1316.00 per ounce.