Gold News

Gold prices 'unlikely to cool'

Gold's current buoyancy is showing few signs of dampening any time soon, according to one expert.

Prices hit a record high of $891.40 per ounce yesterday (January 9th) and despite easing to $874.25 this morning, the yellow metal is likely to hold steady at its current high level over the next few weeks at least, Pradeep Unni of Vision Commodities told Reuters.

He commented: "The next probable stop for gold is around $920 and that is likely to be witnessed before the Fed decision or immediately after that."

Interest rates were held by both the Bank of England and the European Central Bank (ECB) earlier today at 5.5 per cent and four per cent respectively.

The ECB also announced today that it is to offer further US dollar liquidity later this month by injecting a total of $20 billion across January 17th and 31st into the money market.

It said in a statement that it was doing so to help in "satisfying the exceptional needs for dollar funding and to facilitate the further normalisation of conditions in the money market".

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