Gold above $1,300 as focus turns to fed policy meeting
Adam Pike, News Editor
29 Jul 2014, 10:28 a.m.
The gold price continues to trade above the psychological $1,300 barrier as violence in Gaza and Ukraine continues to support the price.
Investors are now turning their attention to the release of the latest U.S. jobs report and details from the Federal Reserve’s policy meeting which begins today. Traders will be looking for any clues as to when the Federal Reserve will start to raise interest rates.
Any indication that the U.S. economy is strengthening could prompt the Federal Reserve to increase rates quicker than expected. Typically higher rates would encourage investors to buy interest bearing assets at the expense of gold.
The gold price has benefited from the increasing tension between the West and Russia. The latest decision by the U.S. and Europe to impose further sanctions on Russia should support the gold price.
The West hopes the new sanctions will increase the pressure on Russian leader Vladimir Putin following the shooting down of Malaysian airline MH17. The West believes Russia has been arming the rebels in the east of the country.
Gold is currently trading at £771.62 per ounce, silver at £12.21 per ounce, platinum £875.38 and palladium at £518.88.