Gold price struggles near 5 year low as investors wait for inflation data
Adam Pike, News Editor
17 Nov 2015, 11:35 a.m.
The gold price continues to struggle under $1,100 per ounce, as traders look ahead to the release of today’s inflation data for clues on the likelihood of Fed rate rise. The gold price has now declined for the sixth straight day despite the terrible events in Paris.
If inflation is lower than expected the chances of a rate rise diminish which in turn will be bullish for the gold price. The Fed is desperate to create inflation by continually expanding the money supply.
In dollar terms the gold price has fallen to a five year low on expectations the Federal Reserve will start to raise rates this year. However, many doubt the Fed will raise rates with economic data suggesting the global economy is contracting. Japan is in recession and the emerging markets are struggling to repay their U.S denominated debts as commodities continue to fall.
Gold is currently trading at £710.46 per ounce, silver £9.38 per ounce, platinum £571.45 per ounce and palladium £361.75 per ounce.