Gold price advances to 3 ½ month high
Duncan Richardson, News Editor
14 Oct 2015, 10:30 a.m.
The gold price rose to a three and half month high on Tuesday as traders continue to discount a Fed rate hike in 2015. Strong physical buying in China has also supported the price. The gold price has risen £50 per ounce over the last month, whilst the silver price has advanced over 10.5%.
Poor economic data out of the U.S. and the Feds announcement last week that economic conditions are not right for a rate hike has further boosted the gold price. Unsurprisingly the U.S. dollar has traded lower.
In the near term the release of U.S retail and inflation data will likely influence the gold price in the short term.
Physical buying in China has picked up as consumers look for protection from a falling stock market. Indian demand is expected to rise over the next month and a half as the country prepares for a number of Hindu festivals. Combined Indian and China account for over 50% of physical demand for gold.