Gold: an overview of the market situation

The cost of gold futures fell slightly today , by expanding the losses of the previous session , as many investors continued to weigh the Fed's comments with regard to incentives. Recall that the price of gold on Wednesday showed its largest increase in percentage terms since 2009, after the Fed decided to keep its bond-buying program unchanged, contrary to forecasts of a slight decline .

However, this increase was short-lived , as some Fed officials on Friday indicated that the central bank may slow the purchase of bonds in the near future.

Note that one of them was the head of the Federal Reserve Bank of St. Louis, James Bullard , who said the decision not to reduce the amount of bond buying was "dangerous" and next month may be a slight reduction program. The decision was " borderline " after the publication of weak data.

Bullard named October as the likely period to reduce the amount of QE, as may be published some data that will change the understanding of the prospects , and as a result , the Committee may hold a slight reduction in the volume of purchases in October. Markets should not be surprised by the decision , because the members of the Committee on Open Market repeatedly stated that the decision would be "slow" , or reduction of the program will depend on the data , "- said Bullard .

Meanwhile , we add that the decline in gold prices helped the victory of German Chancellor Angela Merkel. Note that Angela Merkel won a landslide victory over his opponent Peer Steinbrueck and his party of Social Democrats ( center-left ) , which won only 26 % of the vote . However, to obtain an absolute majority in the Bundestag Christian Democratic Party Merkel did not have any of three places. Her former colleagues in the coalition, the Free Democratic Party failed to gain 5 % of the vote to win seats in Parliament. As a result, Merkel will have to negotiate with the other party is likely to Peer Steinbrück party to form a coalition .

The cost of the October gold futures on COMEX today dropped to $ 1327.60 per ounce.