Precious metals gold and silver notched significant benchmarks on Monday because of investors' concerns about inflation, Bloomberg reports.
For the fifth straight session, gold futures struck record highs as silver futures exceeded $41 per troy ounce. Gold futures top value is $1,478.18 per troy ounce. Both metals' climbs are due to heavy investor activity because of a shaky dollar and inflation concerns, analysts said.
The increasingly pressurized U.S. dollar as "the easy monetary policy of the Federal Reserve is a contrast against the gradual tightening stance taken by other central banks," Ong Yi Ling, Singapore-based analyst with Phillip Futures, told Bloomberg. "A weak dollar increases the appeal of gold as a currency alternative."
Immediately prior to 11 a.m. on Monday gold futures were down 0.24 percent, a $3.50 decrease to $1,470.60 per troy ounce. Silver futures rose 1.45 percent, a 0.587 increase to $41.195 per troy ounce.
"Commodities across the board are rallying, aggravating the inflation outlook," Chae Un Soo, a Seoul-based trader at KEB Futures, told the news service. "For now, more and more investors are looking to precious metals as a shelter."
Risk Disclosure
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.
