Gold Rallies to 1-week High on Fed's Dovish Statement

March 31, 2016

Gold futures extended rallies from the previous session in European trading hours on Wednesday, edging up to a 1-week high as market players lowered their expectations on the pace of interest rate hikes this year.

The move came after the Chairwoman of the Federal Reserve Ms. Janet Yellen put emphasis on the global dangers to inflation and growth. Therefore, Yellen said that it is important for the Fed to stay cautious on tightening the monetary policy.

On the New York Mercantile Exchange’s Comex division, Gold for June delivery added 0.21 percent or $2.60, to change hands at $1,240.10 per troy ounce by 2:58 AM ET.

During the previous day, the yellow metal surged to $1,245.20—the highest since March 23—after Yellen’s dovish remarks.

So far this 2016, gold prices have been up by almost 15 percent as market players seek safe haven assets in the face of increasing financial market instability and as concerns over a China-led global economic downturn make it more difficult for the US central bank to increase interest rates.

Meanwhile, silver futures for May delivery rose 0.8 percent or 12.2 cents to change hands at $15.35 per troy ounce during morning trading hours in New York. On the other hand, copper futures dipped 1.22 percent or 2.7 cents to hit $2.187 per pound. Copper prices plunged to a more than 1-week low of $2.182 earlier on the back of worries regarding global economic growth.

Publication source
Trade12 information  Trade12 reviews

January 18, 2017
Trump kicks the Dollar down
Trump hinted in his interview to the Financial Times that the US Dollar went for a far too extensive rally and the enthusiasm surrounding the bulls needs to be cooled...
January 18, 2017
Fed speakers, BoC and UK employment
We are going to see some central bank action (Canada) and hear from some Fed members and the chairwoman today. Apart from that we will get more information on the UK labor market and a data package from the US, including CPI for December and industrial output...
January 18, 2017
Aussie dollar cracks major levels
The Australian dollar swung heavily today as US bulls finally looked to sell off in the wake of economic uncertainty around the United Kingdom...

Fort Financial Services Rating
FOREX.com Rating
XM Rating
OANDA Rating
Z.com Trade Rating
 FXTM Rating

TropicalTrade Rating
OptionRally Rating
Beeoptions Rating
OptionBit Rating
OptionsXO Rating
EZTrader Rating