Gold Prices Rise for the 6th Consecutive Day
Gold prices are growing for the sixth day in a row, as the perspective of a U.S rate increase becomes less threatening and the pace of hikes slows down. Last Wednesday’s FOMC statement was rather cautious and, since then, this rise has been supported by diverging economic data in the United States and also, a weaker U.S dollar.
This is the result of a change in Federal Reserve’s general direction. Even if it left aside terms as “patience”, the main focus remains on caution. As the housing sector slows and the weakened export growths, the committee stated the fact that a raising rate will be unlikely to discuss at the meeting planned on April. Furthermore, the representatives explained that, even in the scenario in which the rate of employment and inflation are close to mandate levels, economic conditions may imply keeping the federal funds rate below the expected level for a period of time to come
Another powerful influence is the inflation rate that fell in February at 0.0%- a significant difference from the targeted 2.0%.
Furthermore, as US Dollar index fell a little over 2.0 percent while the gold price was raising and given the fact that gold is priced in US dollars, this index change has made the metal to appear as a more safe and attractive investment, being currently traded at $1.199.