Home / Metal News /  / Fed interest rate views confirm Gold bull run
Fed interest rate views confirm Gold bull run
Mar 18,2016 08:51CST
Industry News
Source:SMM
Gold remains sharply higher after perceived dovishness from the Federal Open Market Committee Wednesday.

UNITED STATES March 17 2016 9:53 PM

NEW YORK (Scrap Register): Gold remains sharply higher after perceived dovishness from the Federal Open Market Committee Wednesday, although some near-term profit-taking may cause the rally to fade after the sharp run-up in prices, said Mitsubishi. 

The Fed left U.S. interest rates unchanged, as expected. The gains in gold were largely attributed to the individual projections of Fed members, which collectively show policymakers now expect to hike rates only twice this year, rather than the four increases seen back in December, Mitsubishi explained. 

“This once again confirms the ‘lower for longer’ outlook for U.S. rates and suggests an environment in which the opportunity cost of holding non-yielding precious-metals investments is extremely low,” Mitsubishi added. 

The firm also reported, “The technical reversal at the lows of $1,230 today -- 23.6% Fibonacci retracement of January low to March high -- confirms that gold’s bull run is intact, although we may see some near-term profit taking/rally fade after the recent sharp move higher.”


gold prices
Mitsubishi

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news