CAPITAL MARKETS

Gold, stocks jump on rate rise news

The gold price jumped as the US Federal Reserve’s Federal Open Market Committee raised interest rates, as predicted, and indicated further hikes in 2018.

Staff reporter
 Fed Reserve's Janet Yellen: Additional gradual rate hikes likely to be "appropriate over the next few years"

Fed Reserve's Janet Yellen: Additional gradual rate hikes likely to be "appropriate over the next few years"

"The committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run," FOMC said.

The precious metal was worth US$1,258 on the spot market earlier, about $14/oz higher than the same time yesterday.

In Toronto, Barrick Gold (CN:ABX) closed up 3.3% yesterday while on the other side of the pond, Randgold Resources (LN:RRS) closed 0.74% higher.

In Australian trade, gold miners made some of the bigger gains on the S&P/ASX 200.

Resolute Mining (AU:RSG) was up around 6.5% and both St Barbara (AU:SBM) and Saracen Mineral Holdings (AU:SAR) had gained about 4.5% in afternoon trade.

Diversified miner Independence Group (AU:IGO) rose more than 6% and nickel miner Western Areas (AU:WSA) was up around 5% as the nickel price strengthened on the London Metal Exchange.

The S&P/ASX 200 followed the S&P500 and FTSE100 which had closed lower, while the S&P/TSX and TSX-V Composite indices had both closed slightly higher.

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