Gold News

Gold-dust settles on week's trading

Friday (September 14th) saw gold futures for December delivery fall slightly on the New York Mercantile Exchange, but weekly figures were highly positive for the precious metal.

Friday saw investor reluctance to buy gold faced with renewed uncertainty across markets as to the Fed's upcoming interest rate decision, with gold futures down ten cents but the metal still achieving a weekly gain of $8.10.

Zachary Oxman, a senior trader at Wisdom Financial, highlighted the nervousness of investors across the board as many factor in potential changes to credit availability following Fed chairman Ben Bernanke's imminent interest rate decision.

"The markets seem hesitant to take a definitive direction one way or another before next week's meeting," Mr Oxman told MarketWatch, adding that market anticipation had made it "one of the most pivotal and anticipated Fed meetings in recent memory".

Meanwhile, this morning's trade (September 17th) on Asian markets was reported to be tentative, with many holding off on big investments until news of the Fed decision comes through and the Japanese stock exchange closed for a national public holiday.

Asian liquidity and trading is then likely to be as affected by the Fed decision as American investors, with many worldwide now debating how much the interest rate will be cut by, rather than questioning the possibility of a reduction in itself.

Gold markets are watching Fed developments as intently as the rest, but for now can be contented with last week's impressive increases.


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