Gold near three week low as Fed looks to increase rates
Duncan Richardson, News Editor
20 Mar 2014, 10:35 a.m.
Gold retreated overnight as the Fed decided to taper its monthly asset program known as quantitative easing by a further £10 billion and forecasted that interest rates may start to rise in 2015.
The Fed confirmed their commitment to unwind quantitative easing and forecasted that interest rates will rise to at least 1% by the end of 2015 and 2.25% by 2016. The Fed will evaluate a wide range of data points before deciding when the time is right to increase rates. On the back of this news, The Bloomberg Dollar Index rose to a three week high and gold dipped.
Gold for immediate delivery dropped 0.8% to $1,331.10 and the funds under management at the world’s largest gold ETF the SPDR remained unchanged.
Silver for delivery slipped to $20.58 per ounce, palladium dropped 0.5% to $759.85 per ounce and platinum fell 0.3% to £1,443.13 per ounce.