Gold jumps following weekly loss
Duncan Richardson, News Editor
21 Mar 2014, 10:02 a.m.
Following the largest weekly loss since 2013, gold rebounded on expectation the lower gold price would increase physical buying despite the Fed signalling that interest rates may rise. In Asia, trading bullion for immediate delivery rose by 0.6% to $1,335.63 per ounce
Janet Yellen, the new Fed chairwomen, implied that interest rates could start to rise in six months’ time after the Fed had completed tapering its monthly assets purchase program known as quantitative easing.
Goldman Sacs head off commodities, Jeffery Currie, believes the strengthening of the U.S economy will lead to lower gold prices and attributed the recent surge to cold weather in the US and political events in the Ukraine.
Exchange traded funds experienced positive inflows for the third consecutive day up to 1,764.02 tonnes, although assets held in the SPDR Gold Trust the world’s largest gold ETF remained at 812.78 tonnes
Silver rose 0.4% to $20.33 per ounce, palladium increased by 0.4% and platinum gained 0.5% to $1,438.50 per ounce.