Positive vibes in the gold market following the decision of the Federal Reserve
The Federal Reserve’s decision of keeping the gold interest rates stable has had a positive impact on the gold trade. Over the last weekend, gold has bounced back with an upward streak, which has been concreted with its price hike of over AED 2 per gram.
On Thursday, September 17, 24-carat gold was priced at AED 134.75 per gram. Just after the Fed decision was announced, prices increased to become AED 137 as of Sunday. 22-carat gold too saw an increase in price from AED 128.25 to AED 130.25, while the 21-carat variant went up from AED 123 to AED 125.
The bullion gold ingots were priced at $1,141 per ounce on Friday on the London Bullion Market, which hit the highest net value in the last two weeks. Jonathan Sudaria, dealing at the London Capital Group, made a remark in an AFP report that gold regained its appeal as an asset alternative after the Fed’s decision of not raising interest. Not too long ago, gold prices were falling drastically; hence, it was expected that the US Federal Reserve might bring changes in the interest rate. The speculated prices were to touch the $8,000 per ounce mark.
However, the decision has rather worked in favour of gold, as investors are regaining trust in the precious metal. Recently, Kitco conducted a survey stating that almost all market professionals and retail investors are speculating gold prices to reach higher peaks in the following weeks. In the survey, around 57% investors are optimistic that prices will increase this week, 28% are speculating a bearish tendency, and the rest 15% remained neutral out of a total of 172 respondents.