Gold stocks recover in wake of Fed statement

Johannesburg-SA (Jub 18) Gold stocks staged a comeback in early trade on Thursday as markets welcomed fresh signals from the US Federal Reserve that it was not in a hurry to raise interest rates.

The gold counters recovered from the recent sell-off to rally as much as 4%, trimming the month-to-date losses to about 6%, as the weaker dollar helped lift the gold price from its recent lows.

The US central bank noted on Wednesday that economic activity expanded moderately, while inflation continued to run below its longer-run objective of 2%.

The Fed statement suggested the central bank was not in a rush to raise rates, which tempers the demand for gold — a noninterest-bearing asset.

AngloGold Ashanti and Sibanye were both up more than 4%, while Harmony and Gold Fields each gained more than 3% in early trade.

Source: BDlive