decoy409
Junior Associate
Joined: Dec 27, 2010 11:17:19 GMT -5
Posts: 7,582
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Post by decoy409 on Jan 19, 2011 11:23:14 GMT -5
Quote: Quote: A.M. Kitco Metals Roundup: Comex Gold Firmer on Faltering U.S. Dollar Index, Rallying Commodities
(Kitco News) -Comex gold futures prices are trading modestly higher Wednesday morning, as a wilting U.S. dollar index is providing a lift to the precious metals. The commodity sector, in general, is seeing price strength Wednesday, which is also boosting gold. February Comex gold last traded up $6.60 at $1,374.80 an ounce. Spot gold last traded up $7.20 at $1,375.50.
The U.S. dollar index is trading lower again Wednesday morning and hit another fresh two-month low overnight as the greenback bears have gained fresh downside near-term technical momentum. If the U.S. dollar index continues on a downward path in the near term, look for gold prices to then trade sideways to higher.
The precious metals markets and other commodity markets are keenly awaiting Thursday's Chinese consumer price inflation data. The Chinese government has warned it wants to keep domestic consumption and commodity price inflation in check. Any high inflation readings in China would be bearish for all commodity markets, as it would hint that Chinese monetary officials would implement new measures to crimp Chinese demand. Just last week Chinese monetary authorities raised the reserve requirement ratio for banks by 0.5%, to 19%, in an effort to reduce borrowing and cap inflationary pressures in the world's most populous nation.
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decoy409
Junior Associate
Joined: Dec 27, 2010 11:17:19 GMT -5
Posts: 7,582
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Post by decoy409 on Jan 19, 2011 12:59:13 GMT -5
Hard to fly with broken wings.
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