Home / TIPS / MTECHTIPS:-Gold futures rally to 2-1/2 week highs after Fed holds

MTECHTIPS:-Gold futures rally to 2-1/2 week highs after Fed holds

MTECHTIPS:-Gold futures rally to 2-1/2 week highs after Fed holds

Gold prices rallied to two-and-a-half week highs in European morning hours on Friday, boosted by a weaker U.S. dollar after the Federal Reserve’s decision to hold interest rates at this month’s policy meeting. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.98% at $1,127.80. The December contract ended Thursday’s session 0.18% lower at $1,117.00 an ounce. Futures were likely to find support at $1,017.10, Thursday’s low and resistance at $1,140.40, the high of September 2. The greenback weakened broadly after the Federal Reserve kept interest rates unchanged on on Thursday, but losses were limited as the central bank left open the possibility of a rate hike later this year.Speaking after the rate statement, Fed Chair Janet Yellen said global economic developments played a major part in the central bank’s decision. In deciding when to raise interest rates, the Fed repeated it wanted to see “some further improvement in the labor market” and be “reasonably confident” that inflation will increase. Gold had been pressured lower in recent months by uncertainty over when the Fed would hike interest rates from record-lows. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

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