Futures Market News
Gold futures climb as Fed policy makers prepare to convene
Sep 11, 2012 03:18 PM
Gold futures were pushing toward their highest price since March on Tuesday as a consequence of a dollar hobbled by a credit ratings agency's warning against the U.S., according to Reuters.
And anticipations about the policy-making arm of the U.S. Federal Reserve set to implement a third round of quantitative easing also proved to be beneficial to the yellowish metal, which typically performs the inverse of the U.S. dollar.
"The overwhelming consensus is in favor of more (quantitative easing) in a significant way. Let's assume that happens. Gold is going to go higher and $1,800 looks very likely in the short term, but partly because the inflation risks are higher than they were," analyst Daniel Smith with Standard Chartered told the news source.
At 1:21 p.m. on Tuesday, gold futures gained 0.21 percent, a $3.60 lift to $1,735.40 per troy ounce.
Bloomberg reports bullion also benefited from the Federal Constitutional Court in Karlsruhe, Germany, preparing to rule on Wednesday whether Germany's involvement in the European Stability Mechanism coincides with the nation's charter. The ESM aims to help debt-hobbled euro zone nations weakened by the sovereign debt crisis.
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