Friday, 21st July 2006 (3178 views)

The chairman of the US Federal Reserve has indicated that the end of the rate-hiking cycle could be closer than many analysts originally thought, which has led to positive trading on gold stock markets across the globe.

Earlier this week, Ben Bernanke said that economic growth in the United States was beginning to moderate, hinting that the Federal Reserve would not continue with its recent policy of tightening interest rates.

This, plus the news that Israeli ground troops are mobilising in preparation of a ground assault against Lebanese forces in the Middle East, has led to an upsurge in the price of gold.

Investors appear to be buying into the precious metal in greater numbers on the back of the global political tensions and the news of the American economy.

The price of gold was hovering over the $634 mark in early trading on Friday (21st July) in New York, having risen by several dollars since trading opened the previous day.

 

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