Metals futures are gaining in anticipation of further quantitative easing measures by the Federal Reserve.
The Fed released the minutes of its September meeting on Tuesday, and the tone of the meeting seemed to all but guarantee another round of asset-buying by the central bank.
"Many participants noted that if economic growth remained too slow to make satisfactory progress towards reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC's dual mandate, it would be appropriate to provide additional monetary policy accommodation," the minutes read.
This indication is fueling a bull market in metals futures, as commodity futures brokers and traders look for assets that can hold their value as the dollar gives up some of its value.
Analysts David Greely and Damien Courvalin are now calling for gold futures to hit $1,400 per troy ounce in three months and $1,525 per troy ounce in half a year, Bloomberg reported.
In the longer term, however, the Fed may begin contracting monetary policy and put more pressure on the yellow metal.
Comex gold futures for October delivery slipped a bit, losing $2.80 to trade at $1,351.60 per troy ounce. Silver futures for December delivery rose 2.1 cents to $23.37 per troy ounce.
December copper futures gained 0.55 cents to $3.795 per pound.
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