Gold Sanguine as Federal Reserve Raises Discount Rate

February 19, 2010

GOLD

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

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.

PGM’s

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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Stephen Flood

Stephen Flood is the CEO of GoldCore. He is a former Wall Street equity trader and FinTech expert. He has been involved in the precious metals markets since 2004 and has appeared as an expert contributor on CNBC, CNN, BBC, RTE & Bloomberg TV and has had articles published in the Irish Times, Irish Independent and The Sunday Business Post.

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