Silver keeps 30-year best, copper hits fresh 26-month high
By Claudia Assis, MarketWatch , MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rose Wednesday on a weaker dollar and on continued expectations that monetary authorities will open the money faucet again to help revive the economy.
Gold for December delivery, the most active contract, rose $2.20 an ounce, or 0.2%, to $1,310.80 an ounce o the Comex division of the New York Mercantile Exchange.
It had hit a record at $1,314.80 an ounce earlier in electronic trading.
“Expectations of further Fed easing have weighed on the dollar tone and in turn lifted gold,” said analysts at Action Economics.
“However, with the dollar already pricing in a Fed move and with third-quarter earnings not expected to be particularly good there are some calls for corrective action ahead,” the analysts added.
The dollar index (DXY 78.78, -0.24, -0.30%) , which tracks the U.S. unit against a basket of six currencies, declined 0.2% to 78.84 on the expectations that the Federal Reserve would resort to further easing. See article on dollar’s pullback against most major global currencies.
The index had earlier hit its lowest since early February. It late Tuesday stood at 78.956.
Gold closed at a record $1,308.30 an ounce Tuesday, finishing above the key psychological mark of $1,300 for the first time. The metal has rallied to record high settlements for eight of the past nine sessions.
Meanwhile, silver futures held firm at the metal’s best level in 30 years and copper also kept gains to trade at a 26-month high.
Silver for December delivery (SIZ10 2,179, +7.80, +0.36%) added 12 cents, or 0.5%, to $21.82 an ounce.
December copper (HGZ10 364.55, +0.85, +0.23%) advanced a penny, or 0.2%, to $3.64 a pound.
