Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Gold Prices Edge Higher; Silver Prices also Gain

Monday, December 10, 2012 8:34 AM
Gold prices inched higher during Asian trading hours on Monday amid expectations over continued monetary easing by the Federal Reserve in coming months despite stronger than expected nonfarm payrolls data, released in the preceding session; nevertheless, gains are likely to be capped as the precious metal is likely to hover in the tight range of $1680-$1750 as investors will remain in sidelines in the backdrop of policy paralysis in Washington with regard to tax hikes. Silver prices also edged higher in early trading on Monday. At around 6:00 EST, gold futures for February delivery gained 0.28 percent to $ 1710.30 an ounce. Earlier on Friday, gold prices posted mild gains but slumped 0.4 percent for the week as some heavy liquidations by funds amid growing fear of deflation (in case the U.S economy falls off the fiscal cliff in the event of no agreement between congressional negotiations) and technical weakness after the metal fell below its key support level of $1,698 an ounce, triggered sell-off. The Federal Reserve, which launched its third round of quantitative easing in September, with an aim to provide stimulus in the labor market, is expected to expand its monthly bond purchase program, as it meets this week for announcing its next policy rate decision. Economists, according to Reuters, say notwithstanding recent improvement in the job market, the Fed is most likely to announce a fresh monthly bond purchase program worth $45 billion – as Operation Twist, which is buying long term bonds from sales proceeds of short term holdings, comes to end an end by December. Echoing the sentiment is Lynette Tan, an analyst at Philip Futures in Singapore. In a note to investors, Tan wrote, “Market expectation is that there could be more quantitative easing towards the end of the month, and this will be supportive of gold.” Speaking to Reuters, one Singapore based trader said, “If the Fed shows reluctance to continue purchases of mortgage-backed securities on improving economic outlook, gold will sell off, but I'd say that's maybe a 10 percent chance.” Meanwhile, silver futures edged up 0.68 percent to $33.36 an ounce. In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.62%.  
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

'We don't have a magic wand', says ECB's Constancio'We don't have a magic wand', says ECB's Constancio
MADRID (Reuters) - Societies expect too much of central banks and they don`t have a magic wand to boost economic growth, European Central Bank Vice President Vitor Constancio said on Thursday. The E...
Politics clouds proposed overhaul of U.S. housing finance systemPolitics clouds proposed overhaul of U.S. housing finance system
WASHINGTON (Reuters) - The Senate Banking Committee appears likely to back a bill to wind down government-backed mortgage giants Fannie Mae and Freddie Mac, according to sources familiar with talks ...
April U.S. auto sales to rise 8.5 percent: J.D. Power, LMCApril U.S. auto sales to rise 8.5 percent: J.D. Power, LMC
DETROIT (Reuters) - U.S. auto sales will rise 8.5 percent in April from a year ago as spring weather entices consumers to look at new products, industry research firms J.D. Power and LMC Automotive sa...
Angry Muslims in Central African Republic call for partitionAngry Muslims in Central African Republic call for partition
* Angry Muslims call for partition of country after sectarian violence * Militia has driven tens of thousands of Muslims from the south * Ethnic battle for resources has taken on religious overton...
WRAPUP 1-American, Southwest beat forecasts, JetBlue disappointsWRAPUP 1-American, Southwest beat forecasts, JetBlue disappoints
* American, Southwest top expectations as JetBlue trails * United posts wider loss * Carriers say key revenue measure to rise in current period April 24 (Reuters) - American Airlines Group and S...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.