Gold rises on haven demand in preparation of interest rate decision

European officials worked out a strategy for emergency loans in case Greece's plan for 4.8 billion euros (US$6.6 billion) in tax increases and wage cuts isn't enough, without giving precise details. The Fed may signal that rates should remain at virtually zero for an “extended period.”

Gold for immediate delivery added US$5.60, or 0.5 percent, to US$1,114.05 an ounce at 10:12 a.m. local time. Bullion for April delivery was 0.8 percent higher at US$1,113.90 on the Comex in New York.

All 90 economists surveyed by Bloomberg News forecasted Fed policy makers will keep the benchmark interest rate at a record- low range of zero to 0.25 percent. Since March 2009, the Fed has said “exceptionally low” rates are likely warranted for “an extended period.”

Among metals for immediate delivery in London, silver rose 1 percent to US$17.29 an ounce. Palladium added 0.4 percent to US$464 an ounce. Platinum climbed as much as 0.4 percent to US$1,629 an ounce, the highest price since Jan. 21, and was last down 0.2 percent at US$1,620.32.

An ounce of platinum bought 1.4642 ounces of gold late Monday, the most in 18 months. The ratio averaged 1.24 last year and soared to 2.38 in May 2008, the highest level since 2001, according to Bloomberg calculations.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email