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Gold Prices Gain After Bernanke’s Dovish Remarks; Silver Prices Also Edge Higher

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Gold futures gained during Asian trading hours on Thursday, recovering most of the lost ground from previous session as investors took some fresh bets on the metal after the Silver prices, meanwhile, also moved higher in early trading on Thursday.

At last check, gold futures gained 0.88% to $1,324.50 an ounce while spot gold edged up 0.21% to $1,325.26 an ounce.

Earlier on Wednesday, bullion prices dipped about 1% following the release of two back-to-back stronger-than-expected U.S. economic data releases. While the U.S. GDP expanded at a faster-than-expected rate in the second quarter, The ADP job report showed that private sector added 2000,000 net jobs in July compared to economists’ forecast of 180,000. The data not only boosted the dollar, making dollar-priced commodities expensive but also fuelled speculation of early tapering of the economic stimulating measure.

Gold tends to gain in the environment of easy-money policy (printing of notes). As gold does carry any interest or dividend, investors seek safety in this metal due to inflationary concerns.

However, Bernanke, yet again did not provide any clue on when exactly the bank intends to put on the brakes on its asset purchases.

Meanwhile, bullion investors will now shift their focus on U.S. monthly non-farm payrolls data, scheduled to be released on Friday. Strong job numbers will support the U.S. dollar which in turn could weigh on the metal’s demand.

On Thursday the dollar index was up 0.41% to 82.01.

Silver futures were last up 0.49% to $19.72 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.10%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.81%.








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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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