Why is gold rising after a two-week slump?
Gold is finally climbing again, and the reason is that traders are beginning to believe the Federal Reserve may leave interest rates unchanged this month.
After two weeks of selling pressure, the precious metal rose to $4,180 an ounce by Monday as investors reassessed their expectations following comments by Fed Chair Kevin Warsh.
The recovery comes after a weekly decline of 0.7%, but the broader picture remains negative. The precious metal has fallen nearly 20% since tensions between Iran and the US began in February, and is considered to be in bear market territory.
However, buyers have stepped in whenever gold has reached the $4,000 mark. This has been the case since August.
Gold is finally climbing again, and the reason is that traders are beginning to believe the Federal Reserve may leave interest rates unchanged this month.
After two weeks of selling pressure, the precious metal rose to $4,180 an ounce by Monday as investors reassessed their expectations following comments by Fed Chair Kevin Warsh.
The recovery comes after a weekly decline of 0.7%, but the broader picture remains negative. The precious metal has fallen nearly 20% since tensions between Iran and the US began in February, and is considered to be in bear market territory.
However, buyers have stepped in whenever gold has reached the $4,000 mark. This has been the case since August.
