Gold futures climb to 2-week high on Fed relief
Investing.com
Published Oct 09, 2014 02:52AM ET
Gold prices gain ground as U.S. rate hike fears ease
Investing.com - Gold prices rose to a 2-week high on Thursday, as the minutes of the Federal Reserve's most recent policy meeting eased concerns over an early rate hike.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,227.70 a troy ounce during European early morning hours, up 1.80%.
The December contract settled 0.53% lower on Wednesday to end at $1,206.0 a troy ounce.
Futures were likely to find support at $1,205.10, Wednesday's low and resistance at $1,232.70, the high from September 26.
Gold prices strengthened after the minutes of the Fed's September 16-17 policy meeting released on Wednesday showed that a number of officials believe the bank's current language painted the wrong picture on the timing of rate hikes and that an interest rate rise should be tied to U.S. economic progress.
The report also showed that the U.S. central bank cut its growth outlook due to the higher dollar and concerns over global weakness.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Safe haven demand also remained supported after the International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.
Elsewhere in metals trading, Comex, silver for December delivery surged 2.57% to $17.502 a troy ounce, while December copper rallied 1.22% to trade at $3.040 a pound.
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Written By: Investing.com
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