Gold prices neared its record levels, as gold continued to make the inroads which it has been making this year on account of Europe’s sovereign debt, the crisis in Libya, the earthquake and tsunami in Japan, and the rising debt of the USA. God future for June delivery rose by 0.37 percent to USD $ 1509.10 an ounce.
The dollar depreciated to its lowest level in two years against a basket of currencies after the US Federal Reserve began a two-day policy meeting. The Fed is expected to maintain the overnight lending rate for banks between o and 0.25 percent, and to continue with its quantitative easing plans of buying $ 600 billion in treasury purchases. This is expected to cause the dollar to depreciate even further, and has increased the attractiveness of gold. Along with this, concern about the rising levels of debt in the US, exemplified by Standard & Poor revising their outlook for the US’s credit rating from “stable” to “negative” last week, is the major reason contributing to the price hike in gold.
Silver future rose by 1.98 percent to be at USD $ 45.97 an ounce.