Federal Reserve Associates Speaking On Gold Today
Prices on Gold remain the same Tuesday, which was expected since there was a hike in interest rates that sent the dollar sky high.
As the dollar index continues to grow, it makes gold a bit more expensive for those not in the U.S. to invest in the precious metal.
Since the Federal Reserve increased the rate, investors are now shifting their view to what the U.S. central bank will do after their meeting on Wednesday. Back in December, the Federal Reserve said that there would be three rate hikes during the upcoming year.
Gold spot went down 0.2 percent to $1,201.54 an ounce around 2:59 pm eastern time. Investors are looking forward to the meeting on Wednesday as gold futures stay around $1202.06 an ounce.
According to George Milling-Stanley, Head of Gold Strategy with State Street Global Advisors, once investors see where the dollar is going, they then can invest more time watching gold prices recover.
Milling-Stanley also notes that there are a lot of people in the world who love gold. However, with the constant change in price, it leaves a lot of uncertainty. Milling-Stanley was speaking on the elections in Europe’s future.
Gold Not Looking So Hot
On Friday, gold was on a five-week losing streak until U.S. non-farm payrolls report did not hold up to expectations. ABN Amro analyst Georgette Boele told reporters that the fast gold recovery shows gold’s resistance.
Boele states that they see balance in the precious metal. However, yields are not coming in fast enough, so gold should be safe.
In other news, gold investors kept their focus on the Dutch elections on Wednesday, which has raised the haven appeal of gold.
Britain is worried that a second Scottish independence referendum will rise, causing officials to bring up Article 50, which will initially start negotiations for Britan to part ways with the European Union.
The world’s largest exchange trading fund that also backs gold, Holdings of SPDR Gold Trust, went up 0.83 earlier this week.
Sadly, silver did not see the same spike as it went down 0.2 percent to $16.91 an ounce. Platinum slid 0.1 percent at $934.74 an ounce and palladium fell a whopping 1.3 percent making it $741.20 an ounce.