Precious metals started Friday morning on the upswing as investors weighed the prospect of the U.S. economy strengthening from its worst recession in 70 years, Bloomberg reports.
Protestors in Egypt called for the biggest anti-government demonstration yet on Friday since president Hosni Mubarak told state television Thursday night of his resolve to remain in power. For the third time in four months, China raised its interest rates, in a move that shows the world's second-largest economy is trying to slow its surging growth.
The "interest rate hike in China shows real concern about inflation," Wallace Ng, executive director with ABN Amro Securities Asia, told the news service. "We expect more buying from China. That should increase local people’s interest in gold purchases as an inflation hedge."
Shortly after 8:30 a.m. on Friday, gold futures were up 0.21 percent, a $2.80 increase to $1,365.30 per troy ounce. Silver futures were up .30 percent, a 0.091 cent increase to $30.185 per troy ounce. April-delivery platinum was up $4.80 to $1,835.60 per troy ounce. March-delivery palladium was up $3.75 $824.65 per troy ounce.
"Investors are not in a rush to jump back on," analyst Andrey Kryuchenkov of VTB Capital in London told Bloomberg. Egypt remains in focus so the downside will remain limited."
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