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1/25/2019, 5:29 PM (Source: TeleTrader)
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Gold tops $1,300 first time since June

Market bets that the United States Federal Reserve would halt interest rate increases and slow or cease the runoff of the giant bond portfolio underpinned the prices of precious metals on Friday. Such a move could remove some of the headwinds to economic growth and spur consumer prices, while the asset class is the most conventional shield against inflation and in cases of economic downturn. The spot price of gold advanced above $1,300 per ounce, a level last seen on June 15, helped by strong demand for jewelry in India, but also China, where the seven-day Lunar New Year festival begins on February 4.

Major stock indexes in New York rallied more than 1% parallel to a surge in equities in the Eurozone. US Treasuries suffered considerable losses, pushing yields higher. The Fed meets next week. The yellow metal was 1.5% up at $1,300.36 per ounce at 5:28 pm CET after breaching the strong resistance level. It has held higher than $1,250 per ounce for more than a month and investors will be watching if it can close above the round figure.

Silver jumped 2.42% to $15.69 per ounce, matching the session high, which was last observed on January 15. Platinum rose 2.07% to $819.66, the strongest point in two weeks, and palladium surged 1.35% to $1,377.52 for one troy ounce.

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