Gold hits a 16-month high ahead of US Federal Reserve decision
19 Sep 2007
Mumbai: Gold prices rose to the highest in 16 months on speculation the US Federal Reserve would cut benchmark interest rates to head off a possible recession, even as a dollar fall fuelled demand for gold.
Spot gold gained $2.27 at $720.17 an ounce in London, the highest since May 2006.
The Fed will announce its rate decision at 2:15 pm in Washington, along with an accompanying statement on the outlook for inflation and growth.
Gold has risen 7.2 per cent in London this month as a crisis in the US subprime mortgage market weakend the economy, pushing the dollar down 1.7 per cent to a record low versus the Euro.
The
Bank of England on Monday said it would offer $8.77 billion to shore up confidence
in UK banks and mortgagers amid spreading turmoil in global credit markets.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
.jpg "Indian Oil, Panasonic team up for lithium-ion cell production in India")
