Gold climbs to one-month high

Photo:   Investing in Gold

Gold has climbed back to a one-month high, as the dollar showed signs of weakening.

The precious metal has traditionally been a popular option for investors seeking a safe haven during uncertain economic times. With the concern surrounding Greece and the euro, conditions should be ideal for gold, but the asset has struggled in the face of the US dollar, which has been steadily strengthening in the past year.

This week, though, the US dollar showed signs of weakeness, as the Federal Reserve issued a statement that interest rates would only be raised after the labour market had improved. This bearish sentiment saw the greenback slide, pushing gold’s values up over $1,200 an ounce yesterday, its largest rise in almost a month.

“Two quarter-percentage-point hikes before the end of the year could easily become just one if Greek worries, a strong dollar and low inflation outlook continue,” Saxo Bank analyst Ole Hansen told Reuters .

Comments

comments