London Gold Continues To Firm Up

But business was likely to be fairly routine ahead of the over the counter (OTC) option expiry this afternoon.

Gold fixed at $383.25 per ounce on Wednesday against $382.30 on Tuesday and a close then of $381.80/$382.30.

About 70 cents was added later in New York, most of which was retained in the Tokyo and Hong Kong markets, where business was light and currency related, dealers said.

Bullion showed little response to the US Federal Reserve Bank leaving the fed funds and discount rates unchanged at 5.25 and five per cent respectively.

The Federal Open Market Committee which met on Tuesday had been widely touted to favour a 25-basis point rise.

 

Gold has recovered reasonably well as yesterday's (Tuesday's) short covering continues. Potentially there is a bigger rally in gold than there is in silver,