Gold News

Investors 'braced for gold price rises'

Investors in gold are bracing themselves for a possible spurt in buying after the rate cut announcement by the US Federal Reserve yesterday (April 30th), reports Reuters.

The organization cut interest rates by a quarter of a percentage point, as expected, prompting some to speculate that the economy may further lose public confidence.

In turn, this could be good for gold prices as those with assets seek to invest them in the precious metal as a safe haven against financial woes.

David Moore, an analyst with the Commonwealth Bank of Australia in Sydney, said that the rate cut by no means suggests that the worst is over for the US economy.

"I can sort of see a situation where perceptions of the US economy remain fairly changeable in the next couple of months. In that situation, we're likely to see the US dollar remain vulnerable," he said, according to Reuters.

Last month, precious metals analyst Jim Sinclair said that he believes gold prices could hit $1,650 an ounce in the coming months, despite any further rate cuts.

Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now…


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals