For the second straight day, gold futures pushed through record highs. Silver futures hurtled beyond 31-year highs. China, for the fourth time since October, boosted interest rates as a method of capping inflation and cooling off its expansive economy. The value of the U.S. dollar slipped against the euro as European Central Bank officials readied for meetings on Thursday, which are likely to include discussion about the bank's interest rate.
"The reality of accelerating inflation in China is indeed positive for gold," according to a report by UBS AG analyst Edel Tully.
Shortly after 8:30 a.m. on Wednesday, gold futures increased 0.45 percent, a $6.60 rise to $1,459.10 per troy ounce. Earlier Wednesday morning, the precious metal exceeded $1461 per troy ounce.
Silver futures were up 0.94 percent, a 0.367 cent increase to $39.55 per troy ounce. Silver futures touched $39.71 per troy ounce, the commodity's top value since January 1980.
During the past 12 months, gold futures have risen 29 percent while silver futures have at least doubled.
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.