Gold Futures Reach Record Levels on US Monetary Policy

Gold futures reached their record levels on Tuesday as US dollar weakened in reaction to latest Federal Reserve’s meeting. The US Federal Reserve’s Open Market Committee decided not to change the interest rates due to sluggish economic growth. This resulted in shift of focus to safe haven investments such as gold.

Gold futures contract for December delivery jumped 1.7 percent or $29.80 to $1,743 per ounce on Comex division of New York Mercantile Exchange. The respective contract reached its day’s highest of $1,782.50 per ounce on Tuesday. Gold has increased by 23 percent in the current year till now and has been rising for 10th consecutive year.

Head trader and strategist, Matt Zeman from Kingsview Financial in Chicago commented, “I suspect gold is going to keep going, I can’t come up with any roadblocks when it comes to gold pushing forward, at this rate, we can see $1,800, $1,850 (an ounce) in a matter of weeks.”

Among other base metals silver moved in opposite direction of the gold. Silver futures contract for September delivery dropped 3.8 percent or $1.50 to $37.88 per ounce.  Copper futures contract for September delivery gained 0.2 percent or $0.01 to $3.97 per pound on Tuesday.

Platinum also followed the current gold rally and jumped 1.9 percent or $32.80 to $1.756.40 per ounce. The respective contract touched the day’s high of $1,757.60 per ounce on Tuesday. Platinum’s sister metal palladium futures contract for September delivery surged 0.8 percent or $6.50 to $734.55 per ounce.


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