Gold below $1,300
Duncan Richardson, News Editor
16 Jul 2014, 10:21 a.m.
The gold price has steadied following two days of losses and currently trades at £756.29 per ounce. The gold price fell as the dollar strengthened following comments from the Federal Reserve that interest rates may have to increase quicker than expected. Prior to the comments the U.S. Dollar was struggling to hold its value against a basket of leading currencies.
Federal Reserve Chairwomen, Janet Yellen, confirmed on Tuesday that the Central Bank was prepared to increase rates if the employment data continues to improve. Although, Yellen was quick to reiterate the Fed will keep monetary policy loose until employment data returns to pre-2008 levels.
Professional traders interpreted these mixed if not confusing comments from the Fed as bearish for gold. With gold now trading below $1,300 traders are nervous about a further price drop.
Following two days of losses silver currently trades at £12.10 per ounce, platinum at £865.44 per ounce and palladium at £505.26 per ounce.