Gold: an overview of the market situation

Gold prices declined during the first half of today's trading, but then began to recover, allowing return to 9-week high.

Experts note that the projections from the Federal Reserve on interest rates increased the demand for the metal as a hedge against inflation.

The Fed noted that the rates will not be raised further for some time. Some investors had hoped that the Fed will bring little time rate increase and against this background sold gold. No aggressive action by the Fed and encouraged investors to gold. Now, even the good macroeconomic data for the U.S. investors will be treated differently.

"Despite such a strong push market, it is worth noting that the prospects of" bulls "in this market is not too happy. Lack of physical demand for gold provides a "ceiling" prices ", - said the expert Wild Bear Capital.

As demand for the precious metal as a safe haven risen since the Iraqi army fighting with Sunni Islamist militants are still going on Friday.

U.S. President Barack Obama said Thursday that he was sending 300 U.S. military advisers in Iraq and is ready to take military action in the target if necessary.

Meanwhile, we add that the physical market demand for gold was weak. According to traders, a slight increase in demand earlier this week was offset by increases in prices on Thursday.

The cost of the August gold futures on the COMEX today rose to $ 1316.0 per ounce.