Gold prices rose further in London trade Thursday, gaining $20 per ounce from this week’s 5-month lows after the US Federal Reserve raised its key interest rate as expected.
After UK inflation came in at a 6-year high of 3.1%, the Bank of England today voted unanimously to hold its key interest rate at a near record-low of 0.5%.
With annual inflation in Germany reaching 1.8% in its strongest year since 2012, the European Central Bank then said it’s keeping deposit rates at minus 0.4% for commercial banks, while extending its new quantitative easing asset purchases at a monthly pace of 30 billion per month until at least September 2018.
“Economic conditions will evolve in a manner that will warrant gradual increases in [interest rates],” said the Federal Reserve on Wednesday, taking the overnight Fed Funds rate up a quarter-point to 1.50% at the last major meeting chaired by Janet Yellen before current governor Jerome Powell takes over in February.
This post was published at FinancialSense on 12/14/2017.