Commodities: Gold prices rebound amid Fed speculation
Gold prices rose on Friday amid speculation the Federal Reserve will resist moving towards a tighter monetary policy.
Federal Reserve vice chair Stanley Fischer claimed that the Federal Open Market Committee (FOMC) expects to boost its benchmark Federal Funds Rate at some point in 2015, though the timing remains unclear.
Gold futures for April delivery rose 0.3% to $1,213.10 an ounce. IG analyst David Madden said: “Gold is hovering above the psychological $1,200 mark, and now that the Greek situation has been laid to rest for a number of months it is unlikely to stray too far north of this mark.”
Meanwhile, Brent futures rose 3.5% to $62.12 at the end of Friday’s session, while ICE WTI futures increased 0.7% to $49.24.
CMC Markets analyst Jasper Lawler noted: “Friday’s price moves are a continuation of the theme developing this week in oil markets whereby in the US the focus is on supply and the rising stockpiles while in the rest of the world there is hope of increasing demand.”
Over on LME, three-month copper futures fell 0.3% to $5,853.00 a tonne. Madden said: “The red metal witnessed a small price swing this month as the Chinese New Year ensured that little interest was paid to the commodity.”