Fed changes stance of interest rates gold advances
Adam Pike, News Editor
19 Mar 2015, 12:44 p.m.
The U.S. Fed has changed its view on interest rates, which have been at record lows since the start of the 2008 financial crash.
Fed Chair, Janet Yellen, removed the word patience from her regular statement. The amendment has been interpreted by the markets that the central bank will refrain from increasing rates in the near term.
Instead the Fed confirmed they will wait until further improvement in the employment figures. U.S. share indices rose sharply on the announcement with the Dow Jones closing up 0.9% and the S&P up 1%.
We are living in strange economic times when an unelected academic can remove the word patience from a monthly statement and billions of dollars are added to world stockmarkets. The gold price rose on the news as gold traditionally trades higher in a low interest rate environment.
The gold price is currently trading £782.79 per ounce, silver £10.68 per ounce, platinum £752.44 per ounce and palladium £519.53 per ounce.