Gold Prices inched higher on Tuesday as stronger euro and hopes of some fresh economic stimulating measures from the central banks attracted bullion investing; but gains were limited as investors doubt whether European Central Bank (ECB) President Mario Draghi will be able to match his words with some concrete actions. Silver prices also edged higher on Tuesday.
Bayram Dincer, an analyst at LGT Capital Management said to Reuters that (notwithstanding Draghi?s comment), market anticipation concerning additional monetary easing is highly optimistic.
All eyes will be focused on Federal Reserve?s two-day open market meeting which starts from Tuesday.
After recent series of disappointing economic indicators, expectations are widespread that fed will finally offer some sort of monetary easing, aimed at boosting the stalling U.S. economy.
In its note to investors, HSBC bank wrote, ?Some of the tools the Fed could use (to stimulate growth) include extending the use of quantitative easing, extending (its bond-buying program) ?Operation Twist,? or employing new tools such as cutting interest on reserves, or extending interest rate guidance.?
Gold futures for August delivery inched up 0.2%, at $1,623 an ounce.
An ECB insider also hinted on Monday that ECB might also resume its bond buying program and could even print more money in order to lift assets? prices.
If fed does provide any additional monetary support then the yellow metal is likely to gain as its price is highly correlated to fed?s policy stance.
Meanwhile, Swiss bank UBS on Tuesday raised its one-month gold forecast to $1,700 an ounce from $1,550. The bank believes that Fed?s Jackson Hole meeting will play a crucial role in deciding gold?s possible course of prices ahead of September FOMC meeting.
In the physical market side, buying was weak as continued rally in the bullion market kept dealers in the sidelines.
Some other precious metal markets were also gaining on Tuesday with silver moving up 0.6%, at $28.30 an ounce.? Spot platinum edged up 0.5%, at $ 1,417.74 an ounce and spot palladium climbed up 0.8%, at $588.25 an ounce.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.18%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.53%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was inactive.
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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |
Source: http://thestockmarketwatch.com/stock-market-news/gold-prices-inches-up-silver-prices-also-gain/31527
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