1.5% increase in gold prices


Capitals – Reuters:
Gold rebounded, rising more than 1.5% yesterday, after a day of sharp decline, as the US dollar fell and the Federal Reserve unveiled a strategy targeting a low interest rate for a long period. By 1500 GMT, the spot price of gold was up 1.7 percent to $ 1960.72 an ounce, bringing this week’s gains to more than 1 percent. Prices were down by as much as 2.2 percent last Thursday after a rise in US Treasury yields, following a speech by Fed Chairman Jerome Powell.
US gold futures rose 2 percent to 1971.40 dollars an ounce. “The big drop in the US currency has lifted gold,” said David Madden, market analyst at CMC Markets.
The Fed said it could allow inflation to rise above its 2% target for some time. It seems that they will keep their monetary policy in a position of extreme easing, which will support gold. The dollar fell to its lowest level in more than a week, which makes gold less expensive for holders of other currencies, and the currency is heading towards its largest weekly loss in percentage terms since the end of July.
The day before yesterday, Powell said that the central bank will adopt an average of its inflation target, which means that interest rates will likely remain low even if inflation rises slightly in the future.
Silver rose 1.8 percent to $ 27.53 an ounce, heading for gains for the second week in a row.
Platinum fell 0.2 percent to $ 926.49, while palladium advanced 0.5 percent to $ 2,171.08 an ounce.


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