Gold futures were advancing on Wednesday, pushed up in value by anticipations about various central banks getting ready to boost their respective economic systems with monetary stimulus programs, Bloomberg reports.
China, host of the globe's second-largest economy was expected to release economic data on Thursday that was forecast to show inflation is slowing in the Asian nation. Chairman Ben Bernanke of the central bank of the U.S., owner of the world's largest economy, could be preparing to expound options to stimulate the economy when the body he leads convenes later this month at its yearly retreat in Wyoming.
"Gold seems to be supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies," senior analyst Pradeep Unni with Richcomm Global Services told Reuters. "Investors are betting that the festering debt crisis in the euro zone could push the ECB to launch a new round of bond-buying soon."
At 1:34 p.m. on Wednesday, gold futures advanced 0.19 percent, a $3.10 gain to $1,615.90 per troy ounce.
Central bank stimulus programs often drive up the price of gold since they pull down the value of the U.S. dollar, according to Reuters. Gold and the dollar typically perform opposite one another.
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.