GoldCore Update: US Interest Rates to Remain Exremely Low for an Extended Period of Time

By Goldcore Bullion Services Team
05 November 2009 @ 09:05 am EDT

Gold fed low interest rates

Gold dipped slightly overnight but found support at $1,084/oz in the early hours of this morning. It has since recovered and is currently trading at $1,090 /oz. In EUR and GBP terms gold is trading at €735/oz and £659/oz respectively.

The US Federal Reserve has signaled that a return to higher interest rates will not be based solely on economic recovery, but dependant also on an increase in inflation and a recovery in the employment market. They remain committed to keeping interest rates "extremely low for an extended period of time". Meanwhile all eyes and ears will be focused on the Bank of England's Monetary Policy Committee meeting announcement today as well as the ECB rate setting announcement and subsequent press conference. Although no changes in interest rates are expected the rhetoric will be keenly analysed for any signals of their future intentions.

Silver

Silver is currently trading at $17.39/oz, €11.72/oz and £10.52/oz.

Platinum Group Metals

Platinum is trading at $1,355/oz and rhodium at $2,000/oz. Palladium is currently trading at $329/oz.