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Gold Ends Steady after Recording 9 Months High


Fri 01 Feb 2019 | 12:45 AM
Taarek Refaat

By: Taarek Refaat

WASHINGTON, Jan. 31 (SEE)- Gold prices have stabilized, having recorded earlier their highest level in nine months after the Federal Reserve kept interest rates unchanged.

Spot price settled at $ 1320.01 an ounce, after having recorded $ 1326.30, its highest level since April, earlier in the session.

The yellow metal ended this month with gains of about 3 percent.

The Fed kept interest rates unchanged, saying it Will be patient to raise borrowing costs once more this year.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell after the Fed issued cautious statements over a weaker economic forecast.

The index continued to fall after data showed the growth of unemployment in the US, fueling worries of an economic slowdown and a lower purchasing power.

Gold prices usually increase after expectations of lower interest rates, which reduces the opportunity cost for holders of a metal that does not yield regularly.

Demand for the precious metal rose 4 percent last year as the federal reserve purchases touched its highest level since 1967.

Silver spot price fell 0.4 percent to record $ 16.00 an ounce, after hitting $ 16.19 last July.

Palladium also fell 1.4 percent to record $ 1341.50 an ounce, while platinum fell 0.1 percent.