8/28/2020, 4:06 PM (Source: TeleTrader)
more TeleTrader news

Gold prices rise as Fed expects low rates

Prices of spot gold jumped on Friday as investors reacted to expectations of a low interest rate environment in the United States after the Feder Reserve announced it's inflation target will now be set to an average of 2%, meaning both figures above and below will be acceptable.

The yellow metal was up 1.45% at 9:55 am ET, going for $1,957.96 per ounce. Spot gold in dollars is now up 23.81% over the past six months. Gold in euros increased 1.11% to €1,649.8899 per ounce at 9:56 am ET and in pounds, it was up 1.21% to £1,774.6391 per ounce at the same time.

The move in gold prices came as the US dollar decreased against major currencies. As Japanese Prime Minister Shinzo Abe announced his resignation, the US currency dropped 1.05% compared to the yen, a known safe-haven asset, to 105.4450 at 9:58 am ET. Meanwhile, the euro was up 0.52% to 1.18839 against the greenback at 9:59 am ET and the pound gained 0.68% compared to the dollar to change hands at 1.3288 at 10 am ET.

Breaking the News / VP