Price of Gold and FOMC Meeting

Fed: The precious metal was put under pressure as investors left gold safe haven properties ahead of the January FOMC meeting, according to Xinhua China. Despite a recent rise in the price of gold due to global economic instability, analysts say the long-term trend for gold remains bearish as the Fed began the first of its interest rate hikes in December, despite expectations for a delay until 2016. The most active gold contract for February delivery fell 4.4 U.S. dollars, or 0.39 percent, to settle at 1,115.80 dollars per ounce. Some analysts believe that the Fed may increase its key interest rate at the next Federal Open Market Committee meeting in March. Until the December FOMC meeting there had not been an increase in the Fed interest rate since June 2006, before the beginning of the American financial crisis. An increase in the Fed interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest. (news.financializer.com). As reported in the news.