Gold rose nearly 1% or $11.60 to $1,131.30 while silver gained 1.4% or 20 cents to $15.11 an ounce on the COMEX just before the Federal Reserve interest rate announcement yesterday.
Gold in Singapore dipped lower but in European trade gold was moved higher again and is now above $1,140 per ounce. Silver bullion has ticked another 0.8% higher to $15.35 today. Platinum and palladium are slightly lower today.
Gold is headed for a 3 percent weekly gain and silver for a 5.5% weekly gain.
The Federal Reserve kept interest rates unchanged yesterday due to increasing concerns about the global economy and financial market volatility. The sluggish U.S. economy may also have played a role in the decision but this was not signalled.
In what amounted to a somewhat embarrassing volte face, Yellen said developments in a tightly linked global economy had in effect forced the U.S. central bank’s hand. “The outlook abroad appears to have become less certain,” Yellen understatedly told a news conference as gold prices ticked higher.
Yellen was more dovish than expected which is bullish for gold and suggests that the long awaited for bottom for gold may have occurred in early August prior to recent market volatility.
The longer interest rates stay at these record low levels, the better for gold.
Read more on the GoldCore.com blog [6]
IMPORTANT NEWS
FTSE falters after Fed but gold shines as dollar falls – The Guardian
Gold Gets Saved (This Time) by the Fed as Rate Rise Is Deferred – Bloomberg
Gold jumps to 2-week high as Fed holds U.S. rates steady – Reuters
Gold prices head higher after Fed stands pat on rates – MarketWatch
Gold price rallies after Fed holds rates steady – Mining.com
IMPORTANT COMMENTARY
World May Soon Need “QE For The People” – The Telegraph
Corbyn’s QE for the people is exactly what the world may soon need – The Telegraph
This Is What Yellen Said About Negative Rates Coming To The US – Zero Hedge
FOMC Reaction: VIX Crushed As Bonds & Bullion Rip, USDollar & Stocks Slip – Zero Hedge
Britain’s economic Achilles heel – MoneyWeek
Read more News and Commentary [7] on GoldCore.com
Download Essential Guide To Storing Gold Offshore [8]
