Gold declines to almost USD9 ahead of FOMC meeting tomorrow. The precious metal is traded around 1063. Gold price consistenly fell behind strengthening USD, and continued to weaken recently due to Fed rate issue. Gold revenue has been leaning towards lower levels since 2012 because of price decrease. Volume rise in 2014 was counterbalanced by significant price loss. With the background of high production cost, Gold industry has been facing serious challenge as most producers failed to make a breakeven, for the average cost reached to USD1200/ounce, while seliing price was still below USD1100/ounce.
This week is one of the most important times for Gold since Fed is predicted to increase rates for the first time in almost a decade. In what would be their last meeting for this year, Fed is expected to hike US rates with positive economy data supporting the decision. The US central bank is forecasted to add a quarter poin for their interest rates, with analysts predicting on more lowerings in the following months. On the grounds of this liftoff, Merrill Lynch had stated its projection for Gold price to dip to USD950 in the beginning of 2016.
Technical Analysis
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