Tuesday, June 24th 04:37 PM IST

Gold, Silver surge as Fed keeps rates low

# Gold News  

Gold and silver surge as the Fed keeps rates low, against a backdrop of geopolitical instability, said ETF Securities.

NEW YORK (Bullion Street): Gold and silver surge as the Fed keeps rates low, against a backdrop of geopolitical instability, said ETF Securities.

According to ETF Securities, sparked by a dovish FOMC meeting announceme nt, pr ecious metals ral lied sharply last week, led by the 5.3% gain in silver, with gold posting a 3.1 % increase.

Geopolitical issues in Iraq and Russia have added another layer of support helping gold and silver remain above key technical levels of $1,300 an ounce and $20 an ounce.

Gold ended last week with a year-to-date (YTD) gain of 9.1 %, ahead of the S&P 500 index YTD gain of 6.2 %. Unprecedented global central bank stimulus has depressed volati lity across asset markets, including silver, while helping equity indices extend to fresh record highs.

Supportive central bank measures has lifted risk appetite and weighed on precious metals sentiment, with silver positioning near record lows. By most hi storical measures t he equity bull market is in an advanced stage, and as the sustainability of the rally is increasingly called into question, prudent investors appear to be diversifying into the precio us metals (PMs) to hedge potential tail risks.

The S&P 500 passed 578 successive calendar days ab ove the 200dma this Friday . This duration period has been exceeded only 5 -times since 1900. The most was 998-days ending on October 22, 1929.

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