Gold rebounded from 8-month low

FXStreet (Moscow) - Most commodities got under pressure from recent disappointments from China. However, it didn’t affect Gold. Moreover, the precious metal showed some attempts of recovery after 3-day fall we saw last week. The asset rallied from an 8-month low at 1,225.46 (September,12) to current 1,236.42 an ounce supported by the expectations of FOMC meeting scheduled on Wednesday.

The reason Gold reacts positively to the looming Fed meeting lies in expectations of dovish Yellen comments on the current labor market stance, and on US economic outlook. The investors are waiting to see the Fed raising interest rates sooner than it was expected. And if the chairwoman tries to downplay the positive development in the American economy, the metal may get additional boost to go higher. The initial target in this circumstances may be found at 1,240.35 followed by 1,252.64.