"Policy makers seemed to be trying to diminish concerns about currency wars," said Steven Englander, head of Group of 10 currency strategy at Citigroup in New York, according to Bloomberg. "There did not seem any commitment to change behavior, however. There is little to suggest that the dollar's direction is anything but down."
A falling dollar means bullish days ahead for precious metals futures, as commodity futures brokers price in the impact of cheaper currencies.
On the Comex futures exchange in New York, gold climbed 0.7 percent to close at $1,354.40 per troy ounce. Though that's not the highest intraday price gold has ever reached, it is a closing record.
"The bullish case for gold is still intact, and people will come in and buy on the dips," Frank Lesh, a trader in Chicago, told Bloomberg News. "You've got the specter of more Fed easing and economic uncertainty to support the gold market."
Silver futures also gained, rising 1.1 percent to close at $23.349 per troy ounce.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.