Gold Reaches Multi-Week High After Fed Comments

Gold traded over $1230 an ounce in late trading on Wednesday, reaching a multi-week high after comments from Federal Reserve Chairman Janet Yellen suggested that the Fed will not raise interest rates due to the fragile economic climate. Yellen indicated that the Fed would pursue a cautious path as the formidable rise in the U.S. dollar showed signs of slowing down the Fed’s desired goal of a rebound in domestic inflation.   This, in their eyes ,would spur the economy forward. Yellen also cited ongoing conflicts in the Middle East and Europe as reasons to keep economic policy on a steady path for now.

The Fed policy comments led to a wave of short covering in the gold markets, with value investors and those seeking a safe haven for assets jumping in to gold and silver coins and bullion in a flight to safety and real money. Silver price action was even more impressive than that of gold, with silver rising to $17.66 an ounce only days after trading at the $16.50 level. Investors looking to buy rare silver coins and bullion pounced on the buying opportunity with silver trading at depressed levels, and the prospect of a significant rebound in price climbing on the back of the Fed comments.

Sales of both gold and silver U.S. mint coins surged after the Fed comments were released, with investors now having precious metals firmly in their sites. With gold now looking to trade over the psychologically important $1250 level and silver poised for a rebound to $18.00 an ounce, the next few days could be interesting indeed as the precious metals gear up for their next run higher.

Now is the time to buy gold

If you are interested in buying gold to diversify your investment portfolio, we encourage you to download our Free Investors Guide to Rare Coins and Precious Metals.  We put this informative guide together to provide current and potential investors with the benefits and advantages of investing in precious metals and rare coins.  It’s free and available for immediate download.

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2016-10-31T12:19:59-04:00By |Categories: Gold News, Invest in Gold|

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President and CEO of National Coin Broker
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