Gold returned in strength as the predicted US Federal interest rate rise failed to materialise.
The US Federal Reserve’s decision to leave the rates unchanged means the metal has hit its highest point in a fortnight, jumping more than US$10 per ounce to sit at US$1131.76 over night.
This is a boon for gold, after forecasts of the interest rate hike smashed gold prices earlier this month, pushing it within a hair’s breadth of the US$1100 psychological watermark.
The spectre of the increase is believed to have already wiped more than US$2.6 billion from the value of gold exchange-traded products (ETPs).
A potential rate rise has been the main factor in restraining gold’s growth, as the metal typically moves in an opposite direction to the US dollar.
InfoMine has created a graph demonstrating how gold swiftly reacted to the news.