Gold Futures Gain on Expectations of QE3

Gold futures gained on Thursday in reaction to weaker greenback rumors of another round of quantitative easing surfaced. US Federal Reserve officials, William Dudley and Janet Yellen disclosed that the central bank will keep the option of further quantitative easing open. Now the gold investors were investing on the hopes that more quantitative easing will keep the greenback down which will eventually boost the commodities.

Further to add to the weakness of the US dollar, the jobless claims gained 13,000 to their highest level at 380,000 for the week ending April 7th, 2012. The dollar index DXY which tracks the greenback’s performance versus its six major rival currencies declined to 79.314 on Thursday as compared to 79.791 on Wednesday’s North American trading session.

The gold futures contract for June delivery gained 1.2 percent or $20.30 to settle at $1,680.60 per ounce on the Comex division of the New York Mercantile Exchange.

Among other metals, copper futures contract for May delivery, gained 2.2 percent or $0.08 to settle at $3.72 per pound while silver futures contract for the same delivery advanced 3.2 percent or $1 to $32.52 per ounce.

Platinum futures contract for July delivery surged 1.4 percent or $21.70 to $1,606 per ounce while palladium futures for June delivery soared 2.6 percent or $16.50 to settle at $653.10 per ounce.


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