News Column

Gold Stuck Near USD1,310 For Second Day

August 12, 2014

WASHINGTON (Alliance News) - Gold prices remain flat Tuesday morning, with traders waiting for more clues on US monetary policy amid lingering geopolitical tensions.

Yesterday's dovish remarks from Federal Reserve Vice Chair Stanley Fischer have failed to give gold much of a lift, suggesting gold futures may have topped out for now.

Fischer stated that US and global economic recoveries have been somewhat disappointing so far, hinting that the Fed will maintain its ultra-low interest rates for an extended period.

Weakness in European equity markets on the back of soft German economic data is contributing a bit to the bullion's modest upmove.

The European Central Bank has been stubbornly adhering to current monetary policy, but some analysts say the ECB will be compelled to issue further stimulus in the coming months.

Support for gold as a safe haven remains on the back of reports that a convoy of 280 Russian trucks carrying humanitarian aid is headed for Ukraine.

Ukraine has stated that it will deny entry to the convoy as it feels the aid could be a pretext for sending troops.

Gold futures for December are up USD2.50 or 0.19% at USD1,313 an ounce.

Gold has been moving relatively sideways since coming down from a multi-month high near USD1,345 mid-July.

Silver for September is up USD0.017 or 0.08% at USD20.118 an ounce. Meanwhile, copper is up USD0.007 or 0.21% at USD3.181 per pound.

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Source: Alliance News

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