Aussie gold, silver prices soar as prices of precious metals soar
Gold, silver and copper prices have soared to new highs as investors look for yield and yield on investment options.
Key points:The Australian dollar is at an eight-year high against the US dollar after the US Federal Reserve announced it would start raising interest rates next weekMr Trump has threatened to pull out of the Trans-Pacific Partnership deal if the deal isn’t re-negotiatedMr Trump had threatened to scrap the Trans Pacific Partnership (TPP) trade deal if it isn’t renegotiatedBy Matthew Smith, News.auMr Trump’s threats against the TPP deal, which is negotiated by the US, the US and 12 other Pacific Rim countries, could prove a stumbling block to the deal’s re-opening.
The US is negotiating a trade deal with 12 other nations and is expected to agree on a final agreement by the end of 2018.
Ahead of the Trump administration’s announcement, the Australian dollar hit an eight year high against US dollar.
The Australian currency has risen from AUS$1.1442 to AUS#2266 since the start of the year, which puts it at its highest level in more than 10 years.
It has climbed by more than US$2 to US$1,237 since the end and is at its strongest level since November 2017.
Australia has also regained some of the gains it made in the past week.
Its exchange rate has also surged from US$0.87 to US#2.40, which has made the Australian national currency more affordable.
It remains the lowest rate on the planet, at a rate of US$3.18 per Australian dollar.
However, the rise in the Australian currency is also pushing up prices of other commodities, including gold and silver.
The dollar has lost about a quarter of its value against the Australian Dollar over the past month.
That is due to the rise of the US stock market, which led to a dip in the US corporate income tax rate.
The government has been pushing to get the corporate tax rate down to 25 per cent, which it says is a fair deal for companies.
But that is proving difficult because many multinationals do not pay tax in Australia.
The Bank of Australia has been urging the government to move quickly to close loopholes that give them an unfair advantage.
Gold and silver prices have also surged, with the Australian gold price now worth about US$20,000 an ounce.
Its up about $1,400 on the day.
Silver has climbed about 10 per cent over the year to $1.2667 an ounce, which means it is up about 15 per cent since the day it was last traded on October 20, 2017.
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