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Home / Business / PRECIOUS-Gold rises to 5-year peak as US Fed signals are cut down

PRECIOUS-Gold rises to 5-year peak as US Fed signals are cut down



* Fed keeps prices stable, signals potential cuts

* Palladium hits 12 months high

* Spot gold has received about $ 80 so far this month

* (Adds comments, details, update prices)

By Eileen Soreng

20. June (Reuters) – Gold prices rose to their highest in
more than five years on Thursday after the US Federal Reserve
signaled a possible rate cut as early as next month,
urgent US government bonds and dollars.

spot gold was up 1.7% at $ 1.382.61 per ounce as of
1019 GMT, having beaten its highest since March 17, 2014 on
$ 1,386.38 earlier.

Gold prices have increased to about $ 80 so far this month.

U.S. gold futures jumped 2.8% to $ 1

,386.30 an ounce,
After touching its highest since April 2018 at $ 1,397.70.

"The driver of the surge is obviously that the Fed is delivering
the deep tilt that the market was looking for. It removed
& # 39; patience & # 39; approach to cutting prices, said Saxo Bank commodity
strategist Ole Hansen said.

The US Federal Reserve on Wednesday signaled interest
Rate cuts begin as early as July, saying it's ready
Fight for growing global and domestic economic risks that it took
stock of rising trade tensions and growing concerns about weak
inflation. Lower interest rates reduce the opportunity costs
does not give gold and weighs on dollars, does
gold cheaper for investors who own other currencies.

Fed's rating signal came before meetings at other major
Central banks in Asia and Europe as expected to flag
similar features. The European Central Bank and Australian
The central bank had signaled this week more political stimulus was
needed.

"The main reason we see the interest rate
Expectations are reduced so dramatically because it is economical
Data does not go up to the previous strength, and it also has
raised questions about how much more stock markets could
Continue to take advantage of these add-ons, says Hansen.

Although the US central bank left the benchmark index
the interest rate unchanged for now, changed in the Fed's view
since the last political meeting weighed on dollars and U.S.
Treasury dividends. "The (gold) move higher looks constructive for further
Test against $ 1,400 as participants focus on Fed's dovish
Skew, with potential goals ranging from $ 1,450 should
near-term support around $ 1,375 remains intact, "MKS PAMP Group
said in a note.

Meanwhile, China's Trade Department said on Thursday's peak
Chinese and US officials would resume trade negotiations
in line with the wishes of their leaders, but China hopes
The United States will create the necessary conditions for dialogue. "Short-term headwinds (for gold) will be if we see one
Trade agreement is reached between the United States and China, which perhaps only
facilitate some of the concerns about global growth and also the need
for prices to be cut aggressively, Saxo Banks Hansen said.

Silver rose 1.4% to $ 15.37 per ounce, while platinum climbed 1% to $ 818.71 per ounce.

Palladium added 1.3% to $ 1,520.54 per ounce
hit a 12-week high of $ 1,531.38 earlier in the session.

(Reporting by Eileen Soreng in Bengaluru. Editing Jane
Merriman)

5832, outside the United States +91 80 6749 6131; Reuters Messages:
eileen.soreng.thomsonreuters.com@reuters.net))

Disclaimer: The views expressed in this article are the author's and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of information provided; However, Kitco Metals Inc. or the author cannot guarantee such accuracy either. This article is for informational purposes only. It is not a call to make exchanges in goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for any loss or damage arising from the use of this publication.


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