Gold at Seven-Month Highs after Fed Rate Vow: Report

By Midnight Trader,  September 17, 2012, 12:20:53 PM EDT

Gold held around seven-month highs on Monday, after a fourth consecutive weekly gain last week following the Federal Reserve's pledge to keep interest rates low which undermined the dollar and encouraged investor appetite for bullion, Reuters reported.

The dollar fell against the euro after a measure of U.S. regional manufacturing for early September missed expectations, which offered the gold price additional support.

Spot gold was steady on the day at $1,770.40 an ounce by 10:27 a.m. EDT, having risen by nearly 2% last week in the longest stretch of weekly gains in more than a year.

The Fed said last week it would keep U.S. rates near zero until the middle of 2015, building on its existing vow to maintain them at this level until late 2014, triggering a 2% rise in the gold price in one day.

Gold has risen by 13.2% so far in 2012, putting it on course for an eleventh yearly price increase.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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