Gold traders countdown todays Fed decision
Adam Pike, News Editor
17 Dec 2015, 11:25 a.m.
In U.S. dollars the gold price has fallen this week ahead of todays Fed interest rate decision. This week gold was exchanging hands at $1,059.60 per ounce down 1.5% compared to Fridays finish.
After seven years of 0% interest rates, Fed chair Janet Yellen is expected to announce a 0.25% rate hike this afternoon.
Gold and other commodities typically fall as interest rates rise as they become less attractive when compared to income generating assets.
The rate hike is so widely expected should the Fed change course the gold and silver price should surge. The futures market are predicting only a 20% chance rates will not rise.
This morning the price is trading at £709.78 per ounce after briefly falling below £700 yesterday. Among the other metals, silver is trading at £9.21 per ounce, platinum £873.37 per ounce and palladium £378.56 per ounce.