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Updated 21:22 19/02/20

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Dollar dumped as potential U.S. rate hike delayed


Duncan Richardson, News Editor
4 Feb 2016, 1:20 p.m.

The gold price continues to rally buoyed by the growing expectation the Federal Reserve will delay future interest rate rises.

New York Fed President William Dudley told reports the economic outlook for the U.S. had worsened and policy makers should take this into consideration before they raises rates further.

The euro jumped over 2% against the U.S dollar to its highest level since October 2015. The dollar also fell 2% against the Japanese yen despite the Bank of Japan ramping introducing negative interest rates last week. Volatility is once again returning to currency markets.

The gold price is up over 8% in 2016, as equities, oil and emerging market currencies have slumped as the global economy starts to deteriorate.

Holdings in the world’s largest gold exchange traded fund, the SPDR Gold Trust, continues to rise as professional investors re-balance their portfolios.

The markets will now look to Friday’s non farm payroll report for further indication over the health of the U.S economy.

Gold is currently trading at £782.11 per ounce, silver £10.06 per ounce, platinum £606.91 per ounce and palladium £348.65 per ounce.

View original source at: www.theweek.co.uk

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