Gold and silver futures jumped again on Wednesday, with commodity futures brokers and traders betting heavily that the Federal Reserve will once again engage in quantitative easing to push more liquidity into the faltering U.S. economy.
Comex gold futures for December 2010 delivery gained $3.90 to $1,312.20 per troy ounce; earlier, the contract rose as high as $1,315.70 per troy ounce.
Silver futures also rallied, with December silver rising 16.3 cents to $21.87 per troy ounce, and at one point pushing past $22 per ounce.
"Most of what we have witnessed in the complex during the month has been clearly based on perceptions of an inevitable second chapter in Fed accommodation," Jon Nadler, a senior analyst at Kitco in Montreal, told Bloomberg News.
Kitco is a major gold dealer with a booming business selling physical gold bullion and coins over the web in the U.S.
As stock indexes and the dollar fell, haven assets like precious metals gained strength through the day. If the Fed does intervene in a strong way, it will confirm the bull market in gold while deeply undercutting the dollar; it may also end up boosting stock indexes, which may see a potential for more spending and growth as a result of the monetary stimulus.
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