Gold continued to rally on Friday, reaching its highest levels since September of 2013 before beating a retreat. The yellow metal powered higher after Wednesday’s FOMC meeting, where the US central bank left interest rates unchanged, but adopted a more dovish stance. The CME Fedwatch Tool currently shows a 100% chance of a rate cut at the July meeting.
Analysts attributed the surge in gold to falling treasury yields and a weaker U.S. dollar after the Fed meeting. Lower interest rates makes non-yielding investments such as gold more attractive. Meanwhile, geopolitical tensions in the Middle East escalated following Iran shooting down a U.S. drone on Thursday, boosting oil prices and supporting safe haven assets.
KEFI Minerals plc (LON:KEFI) is an exploration and development company focussed on gold and copper deposits, primarily in the highly prospective Arabian-Nubian Shield.