The US central bank will start tapering its stimulus in November
Gold items displayed in a Luk Fook Holdings International jewellery store in Hong Kong. Picture: BLOOMBERG/LAM YIKGold prices edged up on Thursday, recovering from a three-week low in the last session as investors took solace in the US Federal Reserve saying it would not rush into hiking interest rates even as it begins tapering its stimulus.
In a widely expected move, the Fed said it would start trimming its monthly asset purchases in November with plans to end them by mid-2022. “The Fed’s pushback against inflation leaves gold in a decent position for now to move higher until the Fed ultimately signals that ‘we’re not in transitory any more and we’re going to start hiking rates to defend against inflation’," said Stephen Innes, managing partner at SPI Asset Management.
Gold tends to benefit from lower interest rates as they reduce the opportunity cost of holding bullion.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold slips as attention turns to Fed verdictMetal loses ground as traders await the outcome of the US Federal Reserve meeting where the tapering of stimulus is expected to be discussed
Read more »
JSE firmer ahead of Fed decisionThe US Federal Reserve is expected to announce plans to pare back monetary policy support amid concern over inflation
Read more »
MARKET WRAP: JSE shines as Fed prepares statementRand weakness persists as Fed is expected to announce a reduction of monetary policy support, supporting the dollar
Read more »
Global stocks remain at record highs as all eyes turn to the FedEquities hover at record highs while currency markets and US treasuries are steady as investors await the expected tapering of stimulus
Read more »
Gold slips as attention turns to Fed verdictMetal loses ground as traders await the outcome of the US Federal Reserve meeting where the tapering of stimulus is expected to be discussed
Read more »
Octodec cautious on dividend as rental pressure continuesProperty group opts to pay out minimum and instead prioritises debt reduction
Read more »