Gold: an overview of the market situation

Gold prices rose markedly , while adding more than 1 percent , as the debate on the budget of the U.S. and fears about the prospects for the policy of the Federal Reserve increased consumer interest . Recall that Congress must reach an agreement on the federal budget for the following Monday , otherwise the government will stop working . A separate agreement to raise the national debt ceiling has to be taken to the middle of October , or the Ministry of Finance may be faced with the necessity of defaulting on the national debt .

We also add that the rise in prices for the precious metal has surged after a key resistance level .

Meanwhile, in the course of trade impact statements of the head of the Federal Reserve Bank of Chicago Charles Evans , who said that the plans to raise interest rates helped lift growth in the United States .

Speaking at a conference of central banks in Oslo , Norway , Evans said the better-than -expected U.S. economic growth in the period from 2009 to 2013 is associated with messages about the Fed's future policy.

"Crosswinds , which influenced the growth between 2011 and 2013 without the promise from the Federal Reserve to keep interest rates low for an extended period of time, would worsen the situation. In addition , Evans said that monetary policy is used as a weapon against financial instability will lead to inflation below 2 % , the Fed's second goal . Evans also said that the central bank was not quite ready to cut purchases at the last meeting in September , and he sees that the U.S. unemployment rate should fall below 6.5 % before raising the federal funds rate .

Also, note that the physical demand in China is low , according to traders in Hong Kong , making ">The cost of the October gold futures on COMEX today rose to $ 1338.30 per ounce.