Gold Price Reverses Slide Amid US Rate Hike Doubts and Central Bank Politics

The price of Gold has reversed its 3.8% slide in London's spot market, rising to $4490 per troy ounce on Thursday. This increase is attributed to doubts about a US Federal Reserve interest rate hike and central bank politics hitting the headlines.

New York Federal Reserve President John Williams claims that the surge in US government borrowing costs is driven by a strong economy and economic outlook, rather than financial conditions affecting the economy.

However, European Central Bank economists and policy advisors have published a research blog stating that the rise in inflation has been driven almost entirely by higher energy costs. They are calling for a distinct policy response rather than a rush to hike interest rates.

The Netherlands has improved the liquidity and tradability of its gold reserves, transferring part of its holdings from New York and Ottawa to London. This move is seen as preparing the country for severe crises amid increasing geopolitical unrest.