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21 Feb 2014
Spot Gold claiming new highs
FXStreet (Guatemala) - AU Spot rallied from $1,316.00 and has reached highs of $1,325.79.
Previously in the week, gold fell from a 15-week high on speculation that demand for bars would drop following the recent rally. To keep in mind, the spot price has risen as much as 11 percent in 2014 on signs that the the US wasn’t doing as well as forecast. That said, the yellow metal fell 28 percent last year and that is the most since 1981.
At the Fed’s January meeting, they signalled they won’t let weaker economic reports interrupt plans to taper, according to minutes this week. The Fed cut monthly bond-buying by $10 billion at each of the past two meetings, leaving purchases at $65 billion. This is negative for the yellow metal as the Fed tapers and the dollar usually strengthens.
USD weaker / Gold higher
However, there has been a spur of buying at the end of this week with a weaker dollar, as EUR/USD rallies from below 1.3690 and is on track, targeting this weeks highs towards 1.370/80, currently at 1.3760.
Previously in the week, gold fell from a 15-week high on speculation that demand for bars would drop following the recent rally. To keep in mind, the spot price has risen as much as 11 percent in 2014 on signs that the the US wasn’t doing as well as forecast. That said, the yellow metal fell 28 percent last year and that is the most since 1981.
At the Fed’s January meeting, they signalled they won’t let weaker economic reports interrupt plans to taper, according to minutes this week. The Fed cut monthly bond-buying by $10 billion at each of the past two meetings, leaving purchases at $65 billion. This is negative for the yellow metal as the Fed tapers and the dollar usually strengthens.
USD weaker / Gold higher
However, there has been a spur of buying at the end of this week with a weaker dollar, as EUR/USD rallies from below 1.3690 and is on track, targeting this weeks highs towards 1.370/80, currently at 1.3760.