The U.S. central bank's quantitative easing helped commodity futures rise to their highest level in two years, Bloomberg reports. Demand for raw materials as a hedge against inflation is one offshoot prompted by the Federal Reserve infusing the world's largest economy by announcing yesterday it would purchase $600 billion worth of assets. The Standard &… Read more.
Created in 1973 after the disbanding of the Bretton Woods system, the US Dollar Index is comprised of the exchange rates of the EuroFX, Canadian Dollar, British Pound, Japanese Yen, Swedish Krona and Swiss Franc. Its highs have taken us to around 160 and the lows about 70. During these times of record high unemployment,… Read more.
There are shades of the 1930 Smoot-Hawley Tariff in today's debate over the global "currency war," as Brazilian finance minister Guido Mantega referred to the current state of affairs. The tariff, a protectionist measure that levied taxes on foreign imports, is often credited with setting off a round of retaliatory measures and exacerbating the impact of… Read more.
On Tuesday, China spooked the markets by announcing that it would raise its lending and deposit interest rates. The stated goal of the move was to reduce inflation and curb economic growth that some saw as overheating. The measure seemed to succeed – temporarily – as it sent investors running into the U.S. dollar, undercutting… Read more.
The central bank of South Korea – which holds the world's fifth-largest store of foreign exchange reserves – may buy gold bullion to hedge its portfolio, which consists mostly of U.S. dollars, reports the Financial Times. The bank hasn't made a firm commitment, though – if it does choose to buy bullion, it will certainly… Read more.
If it weren't so lucrative for gold futures traders and brokers, it'd be almost boring: Gold set another record today, rising to a high of $1,366 per troy ounce before retrenching slightly to $1,342.60 per troy ounce. Silver performed similarly, as December delivery contracts climbed to a high of $23.53 per troy ounce before slipping… Read more.
Of all the precious metals, Gold is the most popular as an investment and to trade. The value of gold is one of the most widely debated topics in the commodity and futures markets. Before you trade or invest in gold, there are a few things you should consider and recognize concerning the value of gold.
CME Group and Dow Jones Indexes announced Tuesday the launch of a new index called the Dow Jones CME FX$INDEX, which they say will give futures brokers and traders a more efficient way to trade global currencies against the U.S. dollar. The index represents the value of the dollar as compared to a basket of… Read more.