Gold Jumps 2% In the Aftermath of Fed Signalling “Gradual” Path to Hike Rates
Mar, 16th 02:23
Gold surged considerably to more than one-week highs on Thursday on the back of the dollar having plunged steeply after Fed raised rate but signaled no pick-up in the pace of tightening.
Gold futures prices for April delivery jumped around 2% to trade at $1225.00 an ounce, the highest level since March 07th, as the greenback lost ground versus most of its peers even after the Federal Reserve hiked interest rates by 25 basis points to a range of 0.75 percent to 1.00 percent.
This was the second rate hike in three months, a move supported by steady economic growth, strong job gains and prospect that inflation is heading towards the central bank’s target goal.
However, Fed did not signal any plan to accelerate the pace of monetary tightening with Fed Chair Janet Yellen emphasizing that future rate increases would be “gradual.”
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