Friday, 11 April 2014

PRECIOUS METALS TIPS April 11, 2014

DAILY BUZZ
GOLD
  • Gold extended gains to a third session on Thursday, scaling fresh two-week highs, after minutes from the Federal Reserve's policy meeting showed that officials were not keen on increasing interest rates anytime soon.
  • Gold prices came under pressure last month after Fed Chair Janet Yellen said the US central bank would probably end its massive bond-buying programme this fall and could start raising interest rates around six months later. Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been an important factor driving gold higher in recent years.
  • Minutes from the Fed's March 18-19 meeting released on Wednesday showed policymakers were unanimous in wanting to ditch the thresholds they had used to telegraph a policy tightening and did not reveal any discussion of keeping rates near zero for a considerable time.
  • Spot gold rose to $1,316.81 an ounce - its highest since March 25 - before settling to trade up 0.3 per cent at $1,315.04 by 0319 GMT.
  • It had gained 1.2 per cent in the previous two sessions, also helped by rising geopolitical tensions in Ukraine that boosted its safe-haven appeal. 

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