CAPITAL MARKETS

Gold gains on US rate decision

The gold price has gained as the US Federal Reserve’s Federal Open Market Committee has decided to keep the official rate near zero.

Staff reporter
 Image: Unsplash.com/Oxa Roxa

Image: Unsplash.com/Oxa Roxa

It also projected rates to remain on hold through 2023.

"In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward the committee's maximum employment and price stability goals," it said.

Gold was above US$1,749 an ounce on the spot market at the time of writing.

Metals and mining stocks had risen more than 1% collectively in Toronto.

Barrick Gold closed up 1.7%, while junior South Atlantic Gold (TSXV: SAO) rose almost 31% on no news.

Copper was back above $9,000 per tonne and palladium has broken through $2,500/oz again, on supply tightness.

Norilsk Nickel said this week it expected its 2021 nickel, copper, platinum and palladium production to be 15-20% short of original guidance due to flooding at two of its mines in northern Russia.

Nornickel shares closed down 0.48% in Moscow.

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