The gold is getting cheaper, and the dollar is rising ahead of the Fed meeting


At the trading at the end of the week, the price of gold falls amid rising US dollar exchange rate before the Fed meeting with an interest rate decision.

As of 14:30 London time, the value of gold fell by 0.59%, to $ 1,240.05 per troy ounce.

At the same time, the index showing the strength of the US dollar relative to a basket of six major currencies increased by 0.62, to the level of 97.655.

Gold is getting cheaper against the background of the dollar gaining strength. Most financial analysts predict that at a meeting next Wednesday, the US Federal Reserve will raise the key interest rate by 25 basis points, the fourth time this year.

However, the strengthening of the dollar may be short-term, since experts also believe that the US central bank may slow down the rate of interest rate increase next year.

As a rule, the price of gold is inversely correlated to the US dollar, because the precious metal is traded in US currency.

The material has been provided by InstaForex Company -