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In the U.S the price of gold soared yesterday to $1,128 as the U.S Federal Reserve announced there would be "no change" on interest rates. In Europe and the UK the gold price rose by 1%.
The Federal Reserve hopes to keep interest rates between 0.00% and 0.25% for an “extended period of time” with an aim to keep fighting deflation. This came as no surprise to financial markets. The U.S economy seems to be showing signs of recovery but officials however still describe the start up housing market as being at a “depressed level”.
Low interest rates have reduced the value of the dollar in comparison to other high yielding currencies. As the dollar goes down the appeal of gold is boosted. Now is the time, analysts recommend, to buy gold as a hedge investment. |