The Fed's decision affects the Gold price
The price of gold fell to the level of $ 1,736 per troy ounce. Markets fully recovered losses as a result of the fall in the dollar after the announcement of the results of the Fed meeting. Gold at the moment reached the level of 1754 dollars, but very quickly the quotes corrected to the original values. At the end of the week, gold remains in a narrow trading range, and further dynamics will be determined by the change in the level of demand for the precious metal after the outcome of the Fed meeting.
Analysts at Deutsche Bank lowered their forecast for gold to $ 1,500 per ounce, which implies a change of 13% from previous estimates. The peak in demand for investment gold was recorded during the acute phase of the coronavirus crisis last year. Since then, demand has declined by almost a third. Now there is a downward trend in investment demand for gold. But at the same time, there is a recovery in interest in the asset in India and China, which partially compensates for the fall in global demand.
According to analysts from the investment company VanEck Gold Strategy, since November 2020 (the first news about the creation of a vaccine), the gold market has been under pressure. Another negative factor for the precious metal was the news about the US government's allocation of financial assistance for $ 1.9 trillion, which inspires optimism about the recovery of the US economy. In this regard, there is euphoria in the financial markets.