Gold Ramps Home Its Single Biggest Rise This Year
And as if by magic, the price of Gold is on course for the largest daily increase this year, being ramped up by investors (who were caught with their trousers down) by the prognosis for sustained low rates of interest from the Federal Reserve.
Gold futures contracts for August delivery, the front month contract, increased 3.3%, the largest one day gain in a single day since September 2013.
Gold prices shifted easily through the significant resistance of $1,300-an-ounce, enticing impetus and attracting new liquidity into the marketplace – from fund managers and traders alike. Gold prices have crossed above their 50 and 100-day moving averages in sequence that was rapid, sending investors scrambling to buy.
Some traders, who’d bet against gold, were anticipating a bearish perspective from the Fed. They were surprised by the opinions, compelling them to cut their losses by closing short positions in the metal. Prices often weaken in times of increasing interest rates, as investors look to buy into higher-return assets.
Silver and Gold also got a boost from the ever incresing tensions between Russia and Ukraine, along with continued violence erupting in Iraq. Many investors buy into gold in times of economic uncertainty with a view of a “safe haven” asset, considering other assets will not hold its value better than the metal. This opinion may just yeild some good returns from Gold as we push through the summer months, which are always a slow time for stocks, but may be a high volume time for Gold if the worrying situation in Iraq escaltes much more.
Today Silver prices of futures for July delivery pushed a gain of 4.4 percent to $20.648 an ounce on the Comex exchange, the largest single day increase since Feb this year. This increase was the largest among the 24 raw materials followed by gold in the S&P GSCI Spot index.
Another point worthy of note is, in addition to the rising price of Gold, there was a considerably higher than normal volume than experienced in previous trading sessions, with around 121,000 lots traded across the exchanges (at the point of writing), compared to about 65,000.
Currency Articles - Oct 23, 2015 9:50 - 0 Comments
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