RTTN: Gold Surges To Record Peak; Interest Rate Decisions In Focus
(RTTNews) - The price of gold advanced to a record peak above $1,460 Wednesday morning as its safe haven appeal increased amid unrest across the Arab world and concerns over the euro zone's debt finances.
Gold poised for a volatile session ahead of three central bank policy meetings scheduled Thursday, analysts opined. While the European Central Bank is almost guaranteed to raise rates, the Bank of Japan and the Bank of England are expected to hold steady.
Gold for June delivery, the most actively traded contract, gained $8.20 to $1,460.70 an ounce. Yesterday, gold advanced to a record peak of above $1,450 after the U.S. Federal Reserve chief said inflationary pressures transitory, fueling expectations the central bank will maintain its zero percent interest rates and $600 billion quantitative easing program.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged up, for the first time in three weeks, to 1,212.75 tons from 1,211.23 tons.
Meanwhile, the U.S. dollar slipped back to a 14-month low versus the euro amid speculation that the ECB will hike its key rates Thursday. The buck was paring its prior session's losses against sterling after British industrial production declined unexpectedly in February. The greenback was ticking lower versus the Swiss franc and the yen.
U.K. industrial production fell by 1.2 percent in February from January, the Office for National Statistics said. This follows a 0.3 percent rise in January. Economists had expected a 0.4 percent rise for February.
Elsewhere, the price of silver surged to a fresh 31-year peak and platinum was trading firm in morning deals.
