The gold market does not trust the Fed's optimism

Despite the fact that the US Federal Reserve left the door open for a potential hike in interest rates in September, according to analysts, the markets are reacting differently. Gold prices are declining from their previous highs, but are still at a profitable level after the Fed left interest rates unchanged on Wednesday, but asserting optimistically: "Short-term risks to the economy have diminished."

Gold is still bullish as traders don't expect the Fed to raise rates until mid-2017. They note that prices are ready to move higher and that on average gold prices in the third quarter will reach $ 1,350 an ounce. A rate hike in September is likely, but analysts think it won't.

More than 80% of gold purchases and over 95% of silver purchases were made after the Fed's decision this week. “Because there was no real situation that would lead to a sharp rise in precious metals, without a catalyst for further solutions. The next big catalyst for precious metals will be the actions of the Bank of Japan, ”The Arora Report warned investors.