Association of Natural Rubber Producing Countries

7th Floor, Bangunan Getah Asli (Menara)
148, Jalan Ampang, 50450 Kuala Lumpur, Malaysia.
T: +603-2161 1900     F: +603-2161 3014     E: secretariat@anrpc.org
7th Floor, Bangunan Getah Asli (Menara)
148, Jalan Ampang, 50450 Kuala Lumpur, Malaysia.
T: +603-2161 1900 F: +603-2161 3014 E: secretariat@anrpc.org

Gold at 1-week high, Fed shows no sign of speeding up rate hikes

Gold rallied more than 1.5 percent to a one-week high on Wednesday, as the U.S. Federal  Reserve called for gradual monetary tightening after raising interest rates by an expected 25 basis points for the second time in three months.

 The central bank said in its policy statement that further hikes would only be "gradual," with officials sticking to their outlook for two more rate hikes this year and three more in 2018.             

 The U.S. dollar index   fell to a two-week low, helping lift gold which is denominated in dollars and so became cheaper for holders of other currencies, while the 10-year Treasury yields    tumbled and U.S. stock markets extended gains.            

 Spot gold was up 1.6 percent at $1,217.81 an ounce by 3:01 p.m. EDT (1901 GMT), after rising to $1,219.36, the highest since March 7. It was on track for its biggest one-day jump since September.

 U.S. gold futures  , which closed ahead of the Fed  statement, settled down 0.2 percent at $1,200.70. 

(Reuters, March 16, 2017)
 
   
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