Gold
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.
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07/12/09 North American Gold Stocks Struggle As Golden Rally Loses Its Shine
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23/10/09 Pressure on U.S. administration to support dollar could create volatility in gold markets
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20/10/09 CME Group’s Decision to Accept Gold Bullion as Collateral Reflects Gold’s Growing Appeal as Alternative Asset Class to US Currency and Debt Securities
Other Gold news
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03/09/10 Crude oil down despite encouraging U.S. jobs data
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27/08/10 Gold holds steady after US GDP report
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19/08/10 Gold adds $2/ounce after US employment data weighs on greenback
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18/08/10 Gold bounces back to June highs on safe-haven gains
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10/08/10 Gold rebounds back above $1,200 ounce level
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30/07/10 GDP data hits equities and oil, but US dollar and gold post small gains
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26/07/10 Bullion, coin dealers call for investigation of U.S. coin blanks supply
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08/07/10 U.S. gold coin sales in June fall from one year ago
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22/06/10 Merrill Lynch upgrades gold and silver price forecasts
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18/06/10 Gold futures hit new record high
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