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Gold rallies after US Fed leaves interest rate unchanged

Gold rallies after US Fed leaves interest rate unchanged

Gold and SilverChicago:(IANS) Gold futures on the COMEX division of the New York Mercantile Exchange settled sharply higher on Friday following the US central bank’s decision to keep interest rate unchanged a day earlier.

The most active gold contract for December delivery rose $20.8, or 1.86 percent, to settle at $1,137.8 per ounce, Xinhua reported.

After a two-day policy meeting, the US Federal Reserve announced late on Thursday to let its policy rate unchanged by keeping its benchmark short-term rate near zero, amid concerns about a weak global economy, low US inflation and recent turmoil financial markets.

The US dollar fell sharply following the Fed’s announcement, while gold reacted very positively.

Analysts note gold and the US dollar typically move in opposite directions, that means a weaker US dollar can be a positive for commodities including gold, which is priced in the US dollar because it makes them more expensive for non-dollar investors.

For the week, December gold saw a gain of more than 3 percent.

Among other metals, silver for December delivery rose 17.9 cents, or 1.19 percent, to close at $15.163 per ounce. Platinum for October delivery added $16, or 1.65 percent, to close at $984.4 per ounce.

Gold rallies after US Fed leaves interest rate unchanged

Gold edges higher ahead of Fed’s policy meeting

Gold and SilverChicago:(IANS) Gold futures on the COMEX division of the New York Mercantile Exchange closed higher on Monday, amid weaker global stocks ahead of the US Federal Reserve’s key policy meeting starting Wednesday.

The most active gold contract for December delivery gained $4.4, or 0.4 percent, to settle at $1,107.70 per ounce.

The Federal Reserve will release its crucial policy statement on Thursday afternoon at about 2 p.m. EDT, following a two-day, rate- setting meeting at which the Fed might raise its benchmark interest rate for the first time in more than nine years.

Analysts said that if there is no rate-hike decision from the US central bank on Thursday, this may undermine the dollar and boost gold market.

A weaker US dollar can be a positive for commodities including gold, priced in the U.S. dollar as it makes them cheaper for investors holding other currencies.

Gold also got some support from European and US equities in decline on Monday.

For the day, silver for December delivery dropped 14.2 cents, or 0.98 percent, to close at $14.363 per ounce. Platinum for October delivery lost $9.5, or 0.98 percent, to close at $955.4 per ounce.