Tags: gold | yellen | market | rate

Gold Party Back On as Yellen Assures Market of Gradual Rate Path

Gold Party Back On as Yellen Assures Market of Gradual Rate Path
(Getty/AFP-Michael Cizek)

Thursday, 16 March 2017 12:49 PM

For the gold market, the Federal Reserve has gone from killjoy to life of the party.

The top three most-actively traded gold options are bets on further price gains. The price on the option giving holders the right to buy bullion futures for April delivery at $1,250 an ounce tripled by 10 a.m. on the Comex in New York, with volume more then doubling from the previous day. Futures headed for the steepest climb in eight months on Thursday.

The gold rally had faltered in March after two straight monthly gains amid concerns that the Fed would raise interest rates this year at a faster pace than it projected in December.

Fed Chair Janet Yellen eased those concerns on Wednesday, reassuring investors that monetary policy will remain accommodative “for some time.” Policy makers left unchanged their projection for two more increases this year after Wednesday’s rate hike.

“Three interest-rate hikes are already baked in the price, and this is our base case,” said Naeem Aslam, the chief market analyst at Think Markets U.K. Ltd. “It may be foolish to stay on the short side when it comes to the precious metal.”

Gold futures for April delivery advanced 2.3 percent to $1,228.40 an ounce at 10:58 a.m. on the Comex in New York, poised for the biggest gain for a most-active contract since June 24. The metal headed for its first weekly increase since Feb. 24.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Markets
For the gold market, the Federal Reserve has gone from killjoy to life of the party. The top three most-actively traded gold options are bets on further price gains.
gold, yellen, market, rate
235
2017-49-16
Thursday, 16 March 2017 12:49 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved