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The tax reform will be happened to send "Gospel" gold to raise interest rates is coping hind look empty mountains?

On Wednesday (October 10) in early period, the international spot gold to continue rose slightly, is expected to 4 even Yang, due to the weak dollar support, the highest intraday hit $1291.60 an ounce. On gold hit nearly two week high of the day, but the rate hike prospects limit gains.

Gold on Wednesday 4th consecutive rise, Intel trump tax plan or face resistance, dollars by this concern dipped, gold now continue to rise. Affected by north Korean tensions rose gold, on a narrow cuts after hitting a high of $1294.25. Days on the federal reserve meeting minutes.


Moratorium on the geopolitical situation Tax reform concerns trump comeback

High gold prices rose to nearly two weeks on Tuesday, Spain and Korea geopolitical tensions and a weaker dollar.

On Tuesday, north Korea's founding date, the investor caution, fears Pyongyang test-fired missiles will be celebrating. After Russia and China have called for north Korea to exercise restraint, but the President of the United States in this tweet trump hinted that he has the intention of taking military action.

But then the catalonian autonomous region chairman Carles Puigdemont speech in parliament, suspended the independent process, to seek dialogue with Spain's central government.

Markets reacted, gold gains narrowed.

Other precious metals, silver rose above $17 on Tuesday, the intraday rise further still.

Standard chartered bank, said in a report, gold and silver ratio higher than the average level in 10 years, suggests that silver is undervalued. "Silver power supply and demand is the mine production stagnation and industrial demand higher support. In August, India silver import grew by nearly 60%, increased by 45% in China."

On Tuesday, north Korea not to launch missiles, plus the Catalan suspended independent processes to geopolitical tensions remain on hold, but trump tax reform for gold again brought the Gospel.

According to a report in POLITICO, is said to be the President of the United States were told trump senator Paul Rand might not support tax reform bill. Paul Rand thinks the republican tax plan could lead to a middle class tax burden.

The White House director of legislative affairs Short said republican senator Paul Rand is the key to promote tax reform, and suggests that other White House officials to Paul Rand pressure to ensure their votes.

Affected by this news, speculation the President of the United States tax plan will trump stalled, while the euro rose $further add pressure, so the gold plate continues to rise.


The federal reserve to raise interest rates taishan coping Investment Banks have warned of gold bulls

At present although gold plate continues to rise, but the federal reserve to raise interest rates expected still hold the gains.

The federal funds rate futures traders now expect the fed to raise interest rates in December the chances of nearly ninety percent.

Societe generale analysts Robin Bhar said: "the federal reserve will raise interest rates, so the gold will probably fall in the interval, to $1250 level, and geopolitical tensions will support gold."

Heraeus Metal Management vice President Miguel Perez - Santalla when it comes to concern about Spain and north Korea, said: "the only contain gold, of course, is that the fed will raise interest rates, but if the deterioration of political factors, $1300 is expected to be at the top."

Hui shang FXTM research analyst Lukman Otunuga wrote, recent gold bull appears to be rising use of geopolitical uncertainty. However, he warned, due to the possibility of the United States to raise interest rates in December is still on the rise, the dollar will continue to strengthen, the upside potential of gold may be limited.

He pointed out in the report on Monday, technical traders will pay close attention to gold in the reaction above resistance at $1280. Technical rebound seems to be work, long remains firmly in $1300 below the psychologically. If continue to fall below $1280, gold prices could return to the level of $1267.

RJO Futures Phillip Streible, senior market analyst said, given expectations for higher interest rates so high, is a very difficult market for gold excited day rally.

Streible added that in addition to interest rate expectations in the highest level so far this year, U.S. economic data are still relatively optimistic, this positive for equity markets. The current prospects for gold bearish, gold prices are expected to fall to $1250 an ounce of key support level.

Days, September meeting minutes of the federal reserve is in Beijing on Thursday (12 October) of 2:00, federal reserve policymakers are still at the meeting last month will raise interest rates again this year, is expected to announce tonight's meeting minutes will present policy meeting discussion, or between rates will show whether it is still ambiguous, or already nailing on the plate. The market closely.


The golden afternoon looking

Reuters commodity and energy markets, technical analyst wang tao wrote Tuesday international spot gold target still look up to $1299 an ounce, because its has overcome $1281 an ounce resistance.

International famous investment bank Goldman Sachs group (Goldman Sachs), technical analyst at Sheba Jafari et al., wrote in a report on Monday, "this year on September 8th gold hit $1357 an ounce in more than a year after the high fall, show that on the 1377/80 dollars key resistance fail, means that afternoon trend reversal may occur." Market outlook is expected to gold prices will again fall toward $1100 an ounce, but not below the level.

ANG analysts on Tuesday published in Seeking Alpha wrote, points out that $1300 an ounce the huge resistance line will continue to be gold. Long-term prospect of technology makes it is unlikely to break through the $1300 level. Evidence of a new bull market in gold has yet to be formed.

At the same time, analysts pointed out that suggests gold of correlation between gold and Treasury bonds and the dollar will face more pressure. Also, the dollar/yen has strong negative correlations with gold, if prices continue to go up, will increase the pressure of the gold.

INTL fc stone said in a report, "are we still reiterated that as we have seen, compression of precious metal is likely to continue in the short term, a stronger dollar, elasticity of the stock market, interest rates rise, along with a little bit quiet geopolitical condition together, is the test of gold are."