Gold tops $1300 after Fed meeting


Gold has topped $1,300 an ounce after the US Federal Reserve scaled back its outlook for interest-rate increases and Janet Yellen signaled rates may stay lower for longer.

According to a Bloomberg survey, bullion will rally further if Britons choose to exit the EU, reaching $1,350 within a week of the vote, but could slide to $1,250 should a majority choose to remain in the bloc.

Thursday is the rally in the gold market that has pushed prices to a two-year high of $1,316.80 an ounce, basis August Comex futures. Gold is being supported by the perceived dovish FOMC statement on Wednesday and on safe-haven demand amid wobbly world stock markets and falling world government bond yields. August Comex gold was last up $22.10 an ounce at $1,310.30. July Comex silver was last up $0.267 at $17.775 an ounce.

World stock markets were mostly weaker , amid some keener risk aversion in the marketplace on Thursday.

The Bank of England and the Bank of Japan left their interest rates unchanged, as expected, at their latest monetary policy meetings Thursday. Asian stock markets were lower partly on disappointment the BOJ did not announce further economic stimulus measures at Thursday’s meeting.

There are growing concerns about next week’s U.K. vote on whether that country stays in the European Union. Recent U.K. polls show the “leave” camp is leading the “stay” camp, which has created much uncertainty and anxiety in the marketplace—and is helping push safe-haven gold higher and world government bond market yields lower. The survivability of the European Union in its present form could depend on a “no” Brexit vote next week.

U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings, the consumer price index, the Philadelphia Fed business survey, and the NAHB housing market index.


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