Gold prices remained steady on account of the ongoing crisis in Libya, the impending nuclear disaster in Japan, and hawkish comments from the US Federal Reserve which affected investors’ sentiments. Gold was priced at USD $ 1427.20 an ounce, slightly decreasing by 0.03 percent, but still maintaining its price near the USD $ 1420 level.
The Fed announced that it is not going to extend its bond purchase program, since it believes that the two Quantitative Easing (QE) measures carried out have strengthened the economy on a firm footing. However, the money pumped into the economy on account of the QE measures has increased speculations that it shall lead to inflationary pressure in the long-run. This has strengthened gold’s outlook as a hedge against future inflationary pressure, leading to its high price. Also, the ongoing political turmoil in the Middle East, coupled with the seemingly imminent nuclear meltdown at the Fukushima Nuclear Plant in Japan, have contributed to gold’s escalated position.
Silver futures increased by 0.10 percent to USD $ 37.085 per ounce.