Markets

Gold higher again as Bank of England joins the loosening craze

A couple of hours into US trading spot gold was US$6 higher at US$1,363
picture of Bank of England
BoE cuts rates for first time in seven years

Gold rose again as the Bank of England became the latest central bank to loosen its monetary policy still further.

The UK central bank reduced its main interest rate by 25 basis points to 0.25%, their lowest since 1694 and the first change since March 2009.

There was also a further £60bn added to the bank’s bond purchase programme.

Looser monetary policy was cited yesterday by the World Gold Council as a reason for the surge in investment demand this year that has helped push the metal back up to three-year highs.

Some commentators suggest this may mean gold going as high as US$1,800 per oz, but there was a voice of caution today in the shape of RBC.

The Canadian bank sees an average annual gold price of $1,258 an ounce this year and $1,241 an ounce in 2017.

It says the rally has stemmed almost entirely by investor demand, in the form of exchange-traded product demand and futures positioning.

“Can an endless investor bid drive gold materially north of recent highs of around $1365/oz?” said the bank.

“In commodity strategy, we think not – at least not absent another significant risk-off event.”

Aside from investors, demand for gold elsewhere has been less robust while a strong dollar will remain a hurdle for the metal.

A couple of hours into US trading spot gold was US$6 higher at US$1,363. Silver had risen to US$20.39 while platinum eased US$6 to US$1,153.


No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © personabelovo.ru, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated.