Gold Price Drops as RBA Decides to Keep Interest Rates on Hold
In today’s video update Kris looks at the overnight slump in the gold price and asks if this is the start of a bigger decline…
In this video you will learn:
- Gold Price movements.
- RBA interest rate decision drives gold price lower.
- Speculation that lower interest rate environment could be over.
- Federal Reserve interest rate increase could be coming soon.
Hi Kris Sayce here back for another video update.
Today we’ll have a look at the gold price. Overnight gold saw the biggest fall or the biggest one session fall in more than three years.
You can see that on the chart here. There was the big fall it was down over three percent, the last time it fell to such a degree was way back here in the middle of 2013.
So why did gold gold fall? Well there’s increased speculation that perhaps the trend of low interest rates is about to be over, speculation that the European Central Bank are looking to cut back on their bond purchases and there are further calls from some of the US Federal Reserve members that an interest rate increase could be on the cards for this year.
that does happen it could be bad news for gold. So will that be the end of the downturn or could further falls be on the way?
Well we don’t know for certain right now but will continue to keep a close eye on it.
Thanks for watching we’ll be back again soon.