$1300 may be ‘new floor’ for gold next week: analyst
by Myra P. Saefong
Did the Federal Reserve clear the way for a push higher by gold?
Fed officials left interest rates unchanged Wednesday and cut their expectations for rate hikes in the next two years, brightening the outlook for gold and prompting prices to tap a high of $1,300 an ounce in electronic trading.
Futures prices GCQ6, +1.40% hadn’t traded above the key $1,300 level on an intraday basis since early May, and haven’t settled above that level since late January 2015, according to FactSet data. After settling at $1,288.30 an ounce on Wednesday to log a six-straight session climb, the August contract continued to march higher to sit comfortably above the $1,300 on Thursday. In early trade, gold was up 1.6% at $1,308.80 an ounce.