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Gold Futures Gain, but Silver Futures Flat

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Gold futures gained during Asian trading hours on Monday as investors continued to take positions on inflation-hedge bets following the gold prices easing on Monday. Silver futures, meanwhile, were flat in early trading on Monday.

At last check, gold futures for August delivery gained 0.26% to $1,280.90 an ounce while spot gold was down 0.25% to $1,281.05 an ounce.

Bernanke surprised global financial markets last week by saying that the period of accommodating monetary policy will be continued in the foreseeable future, citing that the U.S. economy wasn’t strong enough to warrant immediate pullback of the quantitative easing.

Earlier (in the third week of June), Bernanke had laid out a pullback strategy for the $85 billion worth, monthly bond purchase program.

In the previous week, gold futures jumped 5.4%, a best weekly performance in almost 2 years, showed a data provided by Reuters.

An environment of easy-money, stokes inflationary concerns which in turn boosts the demand for physical assets such as gold as it does not give dividends or yields.

Speaking to Reuters, one Hong Kong based traders said on Monday, “People are still buying after Bernanke’s assurance.”

“They were expecting the tapering (in quantitative easing) to begin in September but now they think there is a possibility of it happening only next year,” added the trader.

Meanwhile, holdings of the world’s largest gold-backed exchange traded fund are continuously dwindling. A data provided by Reuters showed that the fund has seen outflows of more than 13 million ounces thus far.

Silver futures were nearly flat at $19.80 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.73% to $19.07, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 1.94% to $17.15.

 








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edliston
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.

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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.

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