Gold Sanguine as Federal Reserve Raises Discount Rate
Gold went on a strong run which peaked at $1,123.84/oz in US trading before dropping sharply back to $1,100/oz. It began Asian trading $1,105.00/oz before dipping to $1,101.00/oz. It has recovered since and Gold is currently trading at $1,108.00/oz and in Euro and GBP terms, gold is trading at €820/oz and £720/oz respectively.
The US Federal Reserve increased their discount lending rate to 0.75%, the first such move since 2006. Commentators are speculating that this will pave the way to an end to the zero interest rate policy in the States. This move spurred a rally in the dollar pushing the euro to a nine month low below 1.3500. As this was a purely a dollar story gold in dollar terms fell from its overnight highs while remaining steady against the euro and sterling.
Silver range traded this morning in Asia from $15.75/oz to $15.84/oz and it has moved up since. Silver is currently trading at $15.91/oz, €11.78/oz and £10.34/oz.
Platinum is trading at $1,510/oz and palladium is currently trading at $430/oz. While rhodium is at $2,500/oz.
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