Friday trading hours saw gold trading at its highest in 2-1/2 weeks, setting the platform for making this week, the best one in the whole month. Gold has been spot on in making the best out of this ongoing week, riding on weaker equities and the growing chances of the Federal Reserve holding off its interest rates hikes.
After a three day rally, gold has been steady at $1,317.50 an ounce. On Wednesday, the Fed had their policy meeting and it came to light that the policymakers were not too keen on raising the interest rates after bond purchases as was expected, which gave a further boost to the sentiment of the market.
Gold was already in a great position owing to the Ukraine tension and the aversion of rate hike fears has only turned the tide in the yellow metal’s favor. Gold has since then reached a two week after rising in the last two trading sessions on Friday.
It seems like gold hasn’t lost its appeal when it comes down to its safe haven allure for the investors all around the globe. The yellow metal is up by 1.2% this week and it is being said that the prices may lose its momentum if the outflow of gold fund continues and the physical demand for gold remains weak in Asia.
Owing to the fall in Yuan value, China has been sidetracked in purchasing gold which has resulted in the weaker demand in Asian region. The market has been bolstered and the stage has been set, gold is drawing comfort from the fact that US Fed are not thinking of interest rate hike for anytime soon.