Gold prices rose to a maximum of three months
Gold prices rose to a maximum of three months, as investors hope that the problems of the global economy will force the Fed to postpone raising interest rates.
Gold traded at $ 1.146,80 per ounce compared to US $ 1.142,53 at the close of trading on Wednesday, before reaching the highest level since October 30 high of $ 1.147,40, while US futures rose $ 6.20 to $ 1.147,50 per ounce.
Financial conditions have deteriorated, and the reduction of forecasts for the global economy may have "serious consequences" for the US economy, said the chairman of the Federal Reserve Bank of New York Uilyam Dadli.
His comment and unexpectedly weak indicator of activity in the US service sector gave investors hope that the Fed does not raise interest rates in March and maybe even this year.
In the past, gold has fallen in price by more than 10 percent due to the expectations of the Fed raising interest rates, which occurred in December. Higher rates reduce the attractiveness of gold is not interest bearing. Since the beginning of the year gold has risen in price by almost 8 percent.
"Judging by the futures on the Fed rate, the probability of their increase in March is estimated at only 12 percent, so I do not expect to reduce the price of gold in the near future"- said an analyst at Natixis bank, Bernard Dada.
Investors are waiting going out on Friday a report on US employment. According to analysts, the number of jobs in January increased by 190,000 compared with growth of 292.000 in December. If the index is weak, it could spur dollar sales, said analyst Edward Meir INTL FCStone.
Stocks of the world’s largest gold-ETF-fund SPDR Gold Trust on Wednesday rose to 22.19 million ounces, the highest level since the end of October.
Silver traded at $ 14.77 per ounce compared to $ 14.68 for the close of trading on Wednesday, platinum worth $ 885.75 compared to $ 879.73, and palladium – $ 506.75 versus $ 509.40.
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