0 comments

XAUUSD Rises After FOMC Minutes

by on July 9, 2014 7:38 pm BST
 

XAUUSD for immediate delivery rose 0.4 percent to $1,329 an ounce at 2:33 p.m. New York time. The precious metal jumped 70 percent from December 2008 to June 2011 as the Fed bought debt and cut interest rates to a record in a bid to boost the U.S. economy. The central bank trimmed its monthly bond-buying program to $35 billion, after five straight cuts of $10 billion each since November.

Some policy makers were concerned investors may be growing too complacent about the economic outlook and the central bank should be on the lookout for excessive risk-taking, the minutes of the June 17-18 Federal Open Market Committee meeting showed. The central bank said last month that interest rates will stay low for a “considerable time,” boosting demand for the metal as an inflation hedge.

Bullion slumped 28 percent in 2013 amid concern that the U.S. central bank would slow the pace of monetary stimulus. Prices rebound 9.8 percent this year through yesterday partly as signs of a sputtering economic recovery boosted speculation that the Fed would keep borrowing costs near zero percent.

The precious metal jumped 70 percent from December 2008 to June 2011 as the Fed bought debt and cut interest rates to a record in a bid to boost the U.S. economy. The central bank trimmed its monthly bond-buying program to $35 billion, after five straight cuts of $10 billion each since November.