www.gold.org
Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.
Gold, silver, platinum add to yesterday's gains
Gold advanced ahead of today’s meeting of the Federal Open Market Committee (FOMC), which is set to make a decision on interest rates. While no change is expected to the current ultra-low rates, the Fed’s report could give indications as to when it could raise the borrowing costs, which depends on the strength of the ongoing economic recovery.
A positive assessment of the economy could signal an imminent decision on hiking the interest rates, which could come as soon as Q3. Low interest rates support the demand for gold, which is seen as an inflation hedge.
US dollar declined to further strengthen gold, which is seen as a riskier investment alternative and usually moves inversely to the American currency.
Gold was on the rise yesterday despite speculation of the possible launch of a European Monetary Fund to confront the debt problems that have been ravaging several euro zone countries, keeping the euro under pressure for weeks. Last Friday, the president of the European Central Bank Jean-Claude Trichet said that such a proposal could be considered.
Gold rallied to US$1,123/oz late in the afternoon, while silver reached US$17.43/oz. Platinum declined to US$1,619/oz, cooling off after last week’s rally.
