Gold Up, Hits 6-Week High, On Dovish FOMC Minutes, Bullish Outside Markets
Friday October 09, 2015 08:37
(Kitco News) - Gold prices are moderately higher and hit a six-week high in early U.S. trading Friday. A dovish reading on the latest FOMC minutes and bullish “outside markets” are boosting gold and silver today. Gold’s stability this week and its rally today are impressive, given the U.S. stock market has posted a good rally this week, amid more of a “risk-on” trader and investor mentality. December Comex gold was last up $8.20 at $1,152.50 an ounce. December Comex silver was last up $0.094 at $15.86 an ounce.
Traders are still buzzing about the FOMC minutes released Thursday afternoon that leaned toward the dovish U.S. monetary policy camp that does not want the Federal Reserve to raise interest rates any time soon. The FOMC minutes did not move the markets in a big way, but reaffirmed the notions among many market watchers that world price deflation and anemic world economic growth concerns will keep the Fed from raising interest rates, at least for the rest of this year.
The key “outside markets” see the U.S. dollar index lower and at a three-week low today, partly on the dovish FOMC minutes. The greenback bears have gained technical momentum this week. Crude oil prices are higher and hit a two-month high of $50.88 a barrel overnight, as the Russian military action in Syria is intensifying and making NATO nations very uneasy.
U.S. economic data due for release Friday includes import and export price indexes and monthly wholesale trade data.
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