Gold Rallies Above $1,300 – First Time In 16 Months

By Unknown

Minggu, 12 Juni 2016

Gold Rallies Above $1,300 – First Time In 16 Months

Gold advanced above 1,300 an ounce for the first time since January 2015 $ central banks to speculation United States to Europe will maintain low interest rates, boosting demand for the metal.

futures for June delivery gold climbed up 1.1 percent to $ 1,304.30 an ounce on the Comex in New York, the highest level since 22 January 2015, and was at $ 1,301 at 7:06 the precious metal has climbed 23 percent this year.

investors have flooded back to precious metals this year that risks to the global economy prompted the Federal Reserve to announce, it will take a slower approach to further interest rate hikes. This weakened the dollar and added to the appeal of owning non-yielding assets like gold.

"Gold has shown quite an impressive performance." Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by telephone. "Given that interest rates are likely to remain low for longer in the US, and since the European Central Bank is likely to ease monetary policy, such a high price of gold may be justified."

Fed policy makers last week left unchanged its reference interest rates. This raises the appeal of gold as the metal generally provides investors with returns as the price increases.

gold for immediate delivery advanced as much as 0.7 percent to $ 1,302.20 an ounce before trading at $ 1298.50 an ounce, according to Bloomberg generic prices. Futures trading on the Comex was about even with the average of 100 days for this time, data compiled by Bloomberg show. Markets in Asia and London were closed for holidays.

The Dollar Spot Index Bloomberg is the lowest since May 2015, enhancing the attractiveness of gold and silver as alternatives. The index fell 0.1 percent Monday.

silver futures rose 0.6 percent to $ 17.92 an ounce. Platinum gained 0.4 percent to $ 1082.30 and palladium dropped 0.1 percent to $ 627.25.

Bloomberg

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