Futures Market News
Gold futures edge down after easing-spurred rally
Sep 18, 2012 03:28 PM
Gold futures cooled off on Tuesday after investors cashed in gains from recent rallies, according to Reuters.
After U.S. Federal Reserve chairman Ben Bernanke announced last week that the institution he leads will embark on a third round of quantitative easing, bullion embarked on a rally that saw it advance well beyond the milestone price of $1,700 per troy ounce. But demand for the yellowish metal also is a potential consequence since the intervention might prompt inflation.
"I would simply call it profit taking, if you want. But I think it's within the range of a solid performance that we've seen over the last two weeks or even a month. So nothing unusual," analyst Dominic Schnider with UBS Wealth Management in Singapore told the news source. "So from that angle, the view doesn't change. $1,950 remains the three-month target on the back of investors searching for real assets, the need for real assets. The risk for further dollar weakness is clearly here a supportive factor."
At 1:59 p.m. on Tuesday, gold futures edged down 0.06 percent, a $1 loss to $1,769.60 per troy ounce.
The Wall Street Journal reports the precious metal achieved its highest price in six months last week following the Fed's announcement.
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