Gold prices to the highest level in 11 weeks

Gold prices to the highest level in 11 weeks

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Gold prices jumped on Tuesday to their highest level in 11 weeks, and in particular since the fourth of November 2015, with higher expectations the Federal Reserve is keen to keep the interest rates unchanged.

The Federal Reserve is expected to discuss on Tuesday, in the two-day meeting, concerns and expectations of a global economic slowdown, after the International Monetary Fund cut its forecast for global growth during the current year 2016. Which means that the declaration of the Council is to keep the interest rate unchanged, thus putting pressure on the dollar.

At around 0800 GMT, the price of gold surged to US$1116.2 per ounce, a rise of 1.1% compared with the last close, on Monday, up from US$1105.

The price of an ounce went up to $8 per ounce, compared with early trade on Tuesday, up to US$ 108.2, as investors turned to gold as a safe haven after falling stock markets.

It is expected that gold prices will rise, if the Central American Federal Reserve keeps the interest rates unchanged, at 0.25% – 0.50%.

The rumors caused a raise in the interest rates, in 2015, which actually ended up lifting in the mid-December to incur a loss in the gold price, by 10%.

Gold is a safe haven for investors in case of a geopolitical war and conflict risk, or a downturn in economic equity and oil markets, which is what is happening at the time.

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