The price of gold traded in a positive trend on Tuesday morning. As experts have predicted, Monday's negative dynamics will not last too long due to a lack of severe reasons for it. Most likely, the market has met with the necessary correction, which will only support the growth of metals in the future. The increase was due to news on a new financial incentive program in the US. In addition, market participants are waiting for the last meeting of the US Federal Reserve System in the outgoing year. The said meeting is expected to give answers to many unresolved questions in the country.
The price of gold futures contracts for February delivery on the trading floor in New York rose by 0.39% or $7.1, which sent it to $1,839. 25 per troy ounce. The support of the precious metal was $1,820 per troy ounce, and the resistance went to the area of $1,854.2 per troy ounce.
The price of silver futures contracts for delivery in March also went up by 0.43%, which moved the price to $24,152 per troy ounce.
The price of copper futures contracts for March delivery, on the contrary, was under pressure which dropped 0.39%, its current value began to consolidate around $3.5075 per pound.
Market participants are still seriously concerned about the situation around the negotiation process regarding the adoption of a new program of financial incentives in the US. Discussions about the possible amount of funding have been underway since August of this year, but it was not possible to reach a consensus. Recall that the last time the government considered the amount of $916 billion. By and large, it suited everyone, but the final decision on this issue was never made. Of course, all this cannot but affect the mood of investors, who also begin to hesitate.
In addition, the expectations and hopes of market participants on the upcoming last meeting of the US Federal Reserve for this year, which is scheduled for Tuesday and Wednesday, have a significant impact on the movement of the value of precious metals. Analysts and traders are most concerned about the forecasts that the main regulator will present to the general public. Moreover, plans to change the basic discount rate can change the entire balance of power in the markets. The expected volume of asset repurchases, which will be planned for the next year, is also of great importance. Most experts already express the opinion that the main regulator in the current difficult conditions has no choice but to maintain a soft monetary policy. For how long this will be done, remains unclear. However, one thing is absolutely certain: gold will trade in positive territory from such decisions.
If you look at the dynamics of the precious metal over the past few weeks, you can clearly see that the value of the precious metal has significantly decreased, although at a slow pace, and not by rapid jumps. Thus, the metal has finally moved away from its maximum marks, which were recorded in August of this year. Recall that then the value of the precious metal for the first time crossed the border of $2,000 per troy ounce. Only in the last month of autumn, the metal again sank by 5.5% at once, not to mention the losses it suffered earlier. November was the worst month for gold in the last four years.
Analysts point to the fact that, at the moment, the precious metals market has become more vulnerable and subject to negative changes than it was, say, before the presidential election. However, the Fed's decisions, which will become known very soon, can save it and restore it to its former strength.
