Yellen’s remarks spur gold
Duncan Richardson, News Editor
23 Mar 2015, 2:22 p.m.
The gold price posted its biggest weekly gain since January after the Fed announced they are in no rush to raise interest rates. Assets in gold backed exchange traded funds rose to $885 billion, also the highest level since January.
The U.S dollar posted its worst weekly performance since 2011 after Janet Yellen revised the Feds interest rate outlook. A weakening dollar and low interest rates make gold more attractive. The gold price rallied 2.8% to $1,184.60 per ounce.
Ultimately, if the fed raises interest rates gold will suffer, however, many in the gold community question whether the U.S. can raise interest rates without causing a correction in the stock market and damaging an already fragile economy.
Currently gold is trading at £793.86 per ounce, silver at £11.21 per ounce, platinum £764.06 per ounce and palladium £521.23 per ounce.