by Justin Spittler
Yesterday at precisely 12:20 EST, gold jumped $13 an ounce.
You can see the big spike in this chart.
[…] Gold’s surge came as Federal Reserve chair Janet Yellen spoke at the Economic Club of New York. During her speech, she hinted that the Fed would hold interest rates near zero for longer than expected.
If you’ve been reading the Dispatch, you know the Fed has held its key interest rate near zero for seven years. This “easy money” policy has made it extremely cheap to borrow money.
Recently, the Fed has been talking about raising interest rates. But judging by Yellen’s comments, a rate hike is unlikely anytime soon.