Gold prices near 10 month low ahead of todays Fed rate decision
Duncan Richardson, News Editor
14 Dec 2016, 12:38 p.m.
Gold price are trading near a ten-month low as investors wait for the Feds latest interest rate decision. The yellow metal has retreated in recent months on the assumption the Federal Reserve will finally raise interest rates in December. The equity rally following the election of Donald Trump has also dampened golds appeal.
After registering three positive quarters of growth the gold price has been battered with only sugar showing worse returns on the Bloomberg Commodity Index.
The FOMC meeting concludes later today and its widely-expected Janet Yellen will increase rates for the first time in 12 months. An increase in rates historically has boosted the value of the U.S. dollar and placed downward pressure on the gold price. Investors will also be interested in Janet Yellen’s economic forecasts for 2017 and the timing of future interest rates hikes.
Gold is currently trading at £917.73 per ounce, silver £13.49 per ounce and platinum £742.60 per ounce.