The Federal Reserve Has Announced That Gold Prices Will Drop Sharply, And Analysts Believe That Gold Prices Will Fall To 1200.

As expected, the Fed announced that the federal funds rate would remain unchanged at 0-0.25%'s record level, reducing the size of the monthly purchase debt to US $10 billion to $15 billion per month. It reiterated that it is still appropriate to maintain a highly relaxed monetary policy stance over a long period after the completion of the asset purchase plan.

The keynote of the interest rate resolution is considered to be more hawkish, and the two key indicators of inflation and employment have not improved, which is still a key factor to prevent the US Federal Reserve from raising interest rates in the short term.

Because of the remarks made by Jon Hilsenrath, one of the well-known Federal Reserve news agencies on Tuesday, the market's vigilance against the empty price of gold is rising.

Hilsenrath said in a video report that "the Fed may follow the wording of" maintaining low interest rates for quite some time "after the September meeting.

It was because of the reports that the high dollar was blocked on Tuesday and the price of gold and silver rebounded.

The market predicts that the Fed will change its wording for quite some time.

Morrison on the Markets's founder and editor, Ken Morrison, said: "it took us quite some time to think about the phrase" quite a while. "It turned out to be futile.

Phillip Streible, senior market strategist at RJO Future, said: "the Federal Reserve is approaching the end of QE, so it looks like QE is really coming to an end.

Inflation expectations have risen slightly, and all environments are ready to raise interest rates.

This will definitely have pressure on gold and pressure on gold prices.

This trend will continue. "

Since June this year, gold prices have been falling, especially in September, thanks to the strong US dollar.

Kevin Grady of Phoenix Futures and Options believes that before the FOMC meeting,

There are lots of tight bears.

Think, along with

The positive attitude towards the economy is reaffirmed, and these short holders will continue to hold these positions.

If gold prices can rise, there will be some stop buying between 1245 and 1251, and if these stops are triggered, the price of gold will go up further.

Streible believes that the price of gold is down to the level of test 1200, and there is a stop loss order at this level.

"I am very confident that the gold price will go to that level.

Now, as before, some mining enterprises will begin to speak and threaten to close.

There may be some bounce back to the present level, but then I think it will fall again. "