Gold and silver smashed as U.S. dollar steadies
Duncan Richardson, News Editor
30 Oct 2015, 11:30 a.m.
The gold price has fallen to its lowest level in three weeks on expectation the Federal Reserve may raise interest rates during their December meeting. Considering rates have been held at near zero for 7 years any upward expectation may prove to be misguided.
The gold price had gained momentum over the last month as economic data suggested the world economy is slowing and the possibility of further easing had been tabled by the ECB and the BOJ.
Even more surprising the gold price fell on the same day U.S Commerce Department reported GDP in the U.S. had fallen to 1.5% and pending home sales data missed expectations. Normally one would expect gold to surge following such a data release in expectation the economy is weakening and anticipation the Fed may further loosen monetary policy to halt the decline.
Despite logic, the gold price has fallen 3% to $1,145.10 since the Fed’s meeting and technically is starting to look vulnerable. If the price breaks down below $1,140 per ounce it could trigger traders to liquidate their long positions.
Gold is currently trading at £749.25 per ounce, silver £10.17 per ounce, platinum £650.04 per ounce and palladium £448.44 per ounce.