Gold is continuing to rise, with a recent increase of $2.90 to $1737.70 per ounce for December delivery; a fact that will likely boost confidence in investments with companies such as Bullion Direct. The precious metal has seen losses only once in the last four sessions, and has increased 2.8% in September alone.
Gold is globally recognized as a ‘store of value’, and concerns regarding inflation and currency degradation often trigger increases in worth.
This week’s change is no exception, as the rise came just before the Federal Reserve policy meeting which will take place later this week. Many experts predict that the Fed will announce further bond purchases in an effort to boost the United States’ economy.
HSBC strategists explained:
“With the market’s main focus on this week’s meeting…prices were buoyed by a stronger euro. The euro is being supported by an increase in bullish sentiment stemming partly from expectations of a positive ruling on the legality of the European Stability Mechanism by the German Constitutional Court and European Central Bank bond buying.”