Gold has once again for a 3rd day straight recorded at a fresh record high at USD1464.90 an ounce. This value was achieved near 15:00 GMT following a speech by Jean-Claude Trichet at a press conference meeting taking place shortly after the ECB announced the long awaited 0.25% interest rate hike. The main element from the speech of the European Central Bank president that disappointed investors in the Eurozone and helped the precious metal make gains was his statement that the current interest rates hike may not have been the fist out of a series of subsequent further interest rates hikes that could further benefit the Eurozone in the middle to long term. As the market was expecting more hawkish news the comments triggered uncertainty that caused investors to seek safe haven metals like Gold.
Gold usually tends to undergo during interest rate hikes, as they tend to raise the opportunity cost of holding non-interest bearing metals. Therefore the expectations for a rise in Eurozone rates provided a cap as to how high the gold’s rally to record news highs earlier this year. The precious metal is currently traded at USD1459.23 an ounce.