24 October 2012

Current Gold Price Per Ounce

Commodity price of gold in trading Thursday, closing at its highest level in almost seven months after the chairman of the U.S. Federal Reserve (the Fed), Ben Bernanke, announced details of further easing bond purchases to boost the economy.

The price of gold for December contract rose U.S. $ 38.4 (2.2 percent) to U.S. $ 1,772.1 per troy ounce in New Yok commodity markets (NYMEX). In fact, before the announcement of the Fed, the gold price was at U.S. $ 1,728 per troy punce. The closure is a record high since the end of February and the biggest one-day rise since last June.

Fed officials issued a detailed plan of the mortgage purchase worth U.S. $ 40 billion every month that starts on Friday. The central bank also kept doing operation twist, namely to sell short-term bonds and invest it back in the long run. The Fed also kept its base rate at its lowest level, ie, 0.25 per cent by June 2015.



Trade goes quiet before the Fed announced details of a stimulus, as some investors worried that further easing is not the gold price could decrease U.S. $ 20-US $ 30 per troy ounce. Gold prices rose after the certainty of further stimulus (QE3). Because, with the easing policy further, it will push down the dollar and inflation. Investors assess the gold being the safest place to keep their money in times like these.

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