+357 25 105 641
  • Facebook
  • YouTube
Gold up as Fed to hold rates
Published on 06.09.2016 21:47

The Gold price jumped to a 2 week high in today’s trading as the market pushed back expectations for a rate hike this year from the Us Federal Reserve.

At 6.25pm (GMT) gold was trading at US$1,347 up from US$1,326 in yesterday’s trading.

The price of the precious metal has been trading within a US$40 range for the past 3 weeks as traders remained skeptical on whether the Fed would tighten monetary policy which lent significant support to the price.

Now that a rate hike is virtually out of the question this month or probably even for the rest of the year after last Friday’s disappointing non-farm payrolls and unemployment figure, the gold price may make a run for the US$1,400 mark,

“Technically speaking we are only grinding higher when it comes to gold and the there is no bullet-like move,” said Naeem Aslam, chief market analyst with ThinkMarkets.

. “We need to break above the $1,345 level in spot pricing before we can say that the upward trend will continue. The support of $1,305 is saving the downside.” he added.

Mark O’Byrne, a director at GoldCore in Dublin also weighed into the picture by adding that gold may be headed for further gains, as autumn and in particular the month of September have been good for the Goldprice in recent years,

“Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period,”

 

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The power of leverage is the power of Forex.
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.