Gold massive rebound a five-week high, page-50

(***** News) - Gold prices ended the U.S. day session modestly higher Thursday, on some bargain hunting in the cash market and short covering in the futures.
Gold saw a mild boost in the aftermath of an FOMC meeting that is being deemed a bit dovish.
Also, there is still a bit of safe-haven demand for gold amid this week’s steep slide in the Russian ruble.


Traders and investors were still digesting Wednesday’s Federal Reserve Open Market Committee (FOMC) meeting and Fed chair Janet Yellen’s press conference. Many market watchers were initially confused by the FOMC statement. Then during Yellen’s press conference it became somewhat clearer that the Fed will probably raise interest rates in 2015 but won’t be in a hurry to do so. The market place then deemed the FOMC statement and Yellen’s remarks as more dovish than hawkish, and the stock markets have been in rally mode since.
The big rallies in world stock markets (risk-on) have also been a negative for the competing asset class, safe-haven gold.
Some cited as supportive for gold an announcement coming from Switzerland that the Swiss National Bank will introduce negative interest rates next year.
The SNB made the move in order to deflate the Swiss franc currency. Some investors reckoned that a deflating Swiss franc could prompt more demand for gold.