Precious metals buyers continue to push gold higher after Fed announcement
The value of gold continued to rise on January 27, as the demand of precious metals buyers pushed the commodity higher after the Federal Reserve announcement on interest rates.
Spot gold was trading 0.5 percent higher at $1,727.81 per ounce at 15:00 GMT, according to Reuters. The contract has risen 4.2 percent this week and was on track for its best weekly performance in months.
Gold rose above $1,730 per ounce on January 26 after the Federal Reserve bank stated that it did not plan to increase interest rates until late in 2014, The Economic Times reports.
"The Fed's announcement that it would keep its rates exceptionally low until 2014 was… clearly not fully priced by the market," BNP Paribas analyst Anne-Laure Tremblay told the media outlet. "Real interest rates are likely to stay negative in the U.S. in the next two years, which will be supportive of the gold price."
Reuters reports that while global economic turmoil was a strong contributor to appreciation in the precious metal during 2011, precious metals buyers have taken on a mindset of cautious optimism in the new year.
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