GoldCore Precious Metals Update – Gold Supported by Federal Reserve’s “Exceptionally Low” Interest Rates for “Extended Period”
Gold touched $1,015/oz this morning before retreating to $1,002/oz and then rebounded back to that figure again. Gold needs to re-test recent highs above $1,020/oz to plough its own furrow rather than taking its direction from the vagaries of dollars fortunes.
The Federal Reserve left its target rate for overnight loans between banks in a record-low range between zero and 0.25 percent, and said it will stay "exceptionally low" for an "extended period." This means that the opportunity cost of owning gold remains low, the dollar is likely to remain under pressure and inflation may soon rear its ugly head. Stock markets internationally have fallen today on concerns that the necessary withdrawal of the massive stimulus packages could impact the fragile recovery. Gold is currently trading at $1,014/oz.
Silver is currently trading at $16.76/oz.
Platinum Group Metals
Platinum is currently trading at $1,320/oz, palladium is $296/oz and rhodium is $1,575/1,675/oz.