Gold Prices Jump as Fed Removes 2019 Rate Hike from Projections

0
34
© Reuters. © Reuters.

Investing.com – Gold prices rose on Thursday in following the FOMC’s decision to abandon any expectation of a rate hike in 2019.

were up 1.3% at $1318.45 on the Comex division of the New York Mercantile Exchange by 1:00 AM ET (05:00 GMT).

The precious metal began its rally overnight when the released its latest monthly policy statement on interest rates.

The Fed left rates unchanged at its March meeting amid concerns over slowing growth both domestically and abroad. The central bank has signalled for months now that has no intention to unravel U.S. growth with disruptive rate hikes.

Article continues below Advertisement...

The decision was more than dovish than markets expected and was cited as supportive for the safe-haven gold.

Gold is highly sensitive to interest rates, as lower rates tend to pressure the dollar and increase interest in non-yielding bullion.

Elsewhere, Sino-U.S. trade development made headlines today. U.S. President Donald Trump said he’ll keep tariffs on China “for a substantial period of time.”

“We’re not talking about removing them, we’re talking about leaving them for a substantial period of time, because we have to make sure that if we do the deal with China that China lives by the deal,” Trump told reporters at the White House on Wednesday.

“They’ve had a lot of problems living by certain deals.”

His comments confused some traders, as he also said a deal is “coming along nicely.”

It was reported on Wednesday that U.S. officials are concerned Beijing might refuse to accept U.S. demands in trade talks due to the lack of assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com