Gold Rebounds as Traders Bet on U.S. Rate hike Delay

Gold Rebounds

Gold reached its highest point in 3 months this week as prices rose $1,168.80/oz. Despite the fact that this was a strong week for Gold, the price has gone down quite a bit over the course of the year. The reason for the fall in the price of gold has to do with the crisis of the global economy, which has led many to believe that the fed will raise the interest rate, making traders weary of investing in Gold.


It has taken federal reserve longer than expected to raise the interest rates. This and mixed economic data has made some unsure if the fed will raise the rates. Still, the general consensus is that it will be raised later in the year. Two fed policy-makers who are often at odds with each other said they would both support a rate hike in December as long as it was gradual. This makes it unlikely that the price of gold will rise this year.


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