Gold continues gains as minutes from the latest Fed policy meeting show that officials are not too keen on raising the interest rates in the immediate future.
Despite gold starting the year on a bullish scale, the shiny metal came under pressure last month amid fed chair Janet Yellen discussing that it was most likely that the momentous bond buying programme would cease by autumn 2014 and following this interest rates were to be risen.
Low interest rates, in recent years have been a key factor in driving the gold price against holding other types of assets.
Phillip Futures an analyst Joyce Liu has commented that an important point to take away from the meeting is that nothing has changed indeed any perception of hawkishness (central banks prefer to increase interest rates to tackle inflation) is not true.
Therefore, it is thought gold price will remain “choppy” for the near future. In fact in midterms prices may succumb to bearish pressures.
Gold is currently trading at $1,322 an ounce which is certainly higher than what we have seen in the last week or so.