TV: Gold Prices Gain Traction, Silver Prices Jump over 1.50%
What is the gold price today? Gold prices edged higher during Asian trading hours on Tuesday as expectations are rife that global central banks, scheduled to announce their interest rate policy statements later this week, will keep on monetary easing measures in order to arrest halt in the macroeconomic activities, boosting metal’s inflation hedge appeal.
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“We are going through a very slow period and it is a situation where we need central banks to step up,” said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong in a note.
The European Central Bank (ECB), the Bank of Japan and the Bank of England are all scheduled to announce policy rate statements later this week.
At last check, U.S. gold futures for April delivery gained 0.71% to $1,583.60 while spot gold edged up 0.63% to $1,583.31.
Slightly weaker dollar also supported the demand for yellow metal on Tuesday. As all commodities, including gold are dollar dominated any weakness in the U.S. unit’s pushes up the demand for these commodities as holder of other currencies find them cheaper to buy.
In the U.S. some senior policymakers have shown inclination for more economic stimulating measures since ongoing $85 billion monthly bond purchase program, according to them, was not strong enough to stimulate the labor market. For instance, Janet Yellen who is the Federal Reserve’s influential vice chairwoman, on Monday defended economic stimulating measures, adding that the U.S. economy was operating below its potential.
“At present, I view the balance of risks still calling for highly accommodative monetary policy to support a stronger recovery and more rapid growth in employment,” she said while addressing a press conference on Monday.
In Japan, Haruhiko Kuroda, who has been nominated for the post of BOJ’s next governor by the government of Japan, has already said that more economic stimulating measures are needed to take the nation out of deflation.
Global Central banks’ extremely accommodating monetary policies have been the key driving force behind gold bull runs in last 12 years. As monetary easing entails rampant currency printing, the fear of currencies debasement boosts the demand for inflation-hedge asset such as gold.
Silver futures climbed 1.65% to $28.965 an ounce.
In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 1.23% to $27.94, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 2.53% to $39.35.
