Gold Hit Record Highs As The Dollar Slumped

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Etoro

Gold hit record highs as the dollar slumped following news from the US Federal Reserve that suggested that it may take precautionary steps to stimulate the US economy. Traders at eToro and other Forex markets across the globe witnessed the greenback’s demise, which in turn pushed the spot price of gold to an all-time record price of $1,290.70 an ounce.

The US Federal Reserve stated that it would intervene if necessary to avoid deflation but this news triggered an immediate selloff of the dollar. These proposed moves are an attempt to support the economic recovery in the US and to return inflation back in line with the Reserve’s mandate.

It wasn’t just gold that benefitted from the economic news coming out of the US. The Australian dollar was also boosted as it surged to $95.60. The Reserve Bank of Australia also assisted the Australian currency by making comments regarding an interest hike in October.

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