Gold surges higher after Fed delays rate hike
Duncan Richardson, News Editor
20 Aug 2015, 11:49 a.m.
Immediately following the release of the Federal Open Market Committee (FOMC) latest minutes the dollar fell and the gold price surged. The gold price broke through technical resistance at $1,130 per ounce to finish at $1,117.5 per ounce.
The minutes revealed the Federal Reserve are still waiting for the economy to strengthen before they will raise rates. The Fed is in a difficult position, if they don’t raise rates they run the risk of losing the confidence of the market.
After six years of near zero interest rates many doubt the Fed will ever raise rates and if they do so it will be by a token 0.25%
The FTSE 100 fell over 1% yesterday and is down another 0.5% today to trade near an 8 month low.
Gold is currently trading at £729.28 per ounce, silver £9.86 per ounce, platinum £651.64 per ounce and palladium £394.74 per ounce.