Thursday, December 12, 2019

Gold Prices Rise as Fed Decides to Hold on Rates, Signals No 2020 Rate Hike

© Reuters.  © Reuters. - Gold prices traded higher on Thursday in Asia after the U.S. Federal Reserve held its benchmark interest rate steady and signalled it expects that hold to last through 2020.

U.S. Gold Futures rose 0.3% to $1,478.95 per ounce by 11:49 PM ET (03:49 GMT).

Overnight, the Fed kept U.S. rates unchanged at 1.5% to 1.75% in its December’s policy decision, bringing an end to three back-to-back cuts between July and October.

The central bank also suggested that the current path of monetary policy was "appropriate" to support economic growth and would likely remain in place through next year.

The U.S. dollar index, which in general moves in direction opposite to the yellow metal, traded slightly lower following the news.

Traders now turn their focus on how the Trump administration would proceed come Sunday, the deadline for the imposition of tariffs on another $156 billion worth of Chinese goods.

“In the event the tariffs are not canceled by Friday, then we may see a rise in risk aversion ahead of the weekend” that could benefit gold, Fawad Razaqzada, a London-based analyst for, said in his daily note.

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