Gold futures rose over 3% for week
The gold futures rose over 3% in the previous week, reaching its highest level in the last more than two months amid signs that the US Federal Reserve will maintain historically low interest rates for a significant period of time. The yellow metal for delivery in August rose to a session high of 1,322.50 USD per ounce - the highest level since April 15th, before it retreated slightly to 1,316.60 USD per ounce in late trading on Friday.
Measured against a week earlier, the price of the asset is increased to 3.22%, which was the biggest weekly gain in three months. Today, the precious metal cheaper by 0.2% to 1,314.40 USD per ounce. Earlier in the week the Fed reduced its purchases of government and mortgage bonds with new 10 billion USD per month to a total of 35 billion USD. The main reason was a series of signs that the US economy continues to improve.
However, the central bank also lowered its forecast for economic growth this year to 2.1-2.3% of the previously estimated 2.8-3.0% due to “unforeseen contractions” in the first quarter as a result of an unusually harsh winter. Fed finds and recent increases in inflation and reducing unemployment. President Janet Yellen noted, however, that will not be following specific formula according to which interest rates start to rise at some point.
Meanwhile, the investors were watching the events in Iraq after the conflict between Sunni Islamist insurgents and Iraqi army forces continue in full force. US President Barack Obama said Thursday it would send 300 soldiers specialized and stressed that he was ready to take “targeted” military action if the circumstances warrant it.
After the gold futures growth the silver for July delivery gained also 1.46% to 20.94 USD per ounce, which is the highest level since March 18th, Friday. The contracts rose by 6.16% during the week, reaching its biggest weekly gain in almost four months. The copper for July delivery even added 1.4% to 3,121 USD per pound. For the week, the red metal rose 2.94%.
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