Today the global market of gold is rallying on expectations that the Fed is about to start tapering its accommodative policy aimed at triggering economic growth in the USA. For the first time in 11 weeks, gold prices increased $1400/oz. Therefore, gold could recovery up to June’s prices.
At the same time, platinum appreciated up to the 4-week high. The demand for precious metals increased on rumor that the Fed is going to start tapering its accommodative policy in September.
At this point, the central bank keeps spending 85 billion dollars a months on various bonds in order to support the US economy and markets. Experts assume that in September the amount of bond purchases may well be cut down to 70 billion dollars a month. If this is the case, we will probably see even higher demand for precious metals and higher gold prices.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of gold:
