Gold News: Gold Continues to Rally, Reaching a 15-month High
Gold News
On Monday, Gold traded near a 15-month high as a tumble in the dollar and weakness in global equities pushed investors towarsd the precious metal.
Slowing U.S. growth can explain why Federal Reserve officials have been careful about raising interest rates again. The U.S. central bank decided to let interest rates unchanged after its two-day meeting last Wednesday and issued a statement implying it was not in the hurry to raise rates. There is little hope of a move in June. The Fed said “economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.”
Also, the Bank of Japan last week held off on expanding monetary stimulus, a decision that surprised economists and added further pressure to the already weakening dollar, boosting the gold and silver demand. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
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