Gold is nearing a 7-month high as the Fed increases its rate
Gold prices rose by more than 1 percent on Wednesday. A lower currency and higher forecasts of future rate increases that will be less aggressive helped gold prices reach their highest point since June 13. Spot gold saw a 1.2% increase to $1,860.64 an ounce. This was its highest level since June 13. American gold futures rose 1.1% to $1867.00
Carlo Alberto De Casa from Kinesis Money, an external analyst. The market is showing some confidence. Before the release of the Fed’s December meeting minutes later in the day. This is in contrast to weeks ago when another 0.50% was expected to be almost certain. Investors are now predicting a 0.25% rate increase at the Fed’s next meeting.
Minutes from the Fed’s December meeting, which saw rates increase by 50 basis points (bps) following four straight increases of 75 bps. Market players will also be reviewing data about U.S. job openings at 1500 GMT. The dollar index fell by 0.6% in the meantime, making gold more affordable for foreign investors. Hareesh V. from Geojit Financial Services is head of commodity analyses.
Bullion is a traditional hedge against inflation. It typically…