A.M. Kitco Metals Roundup: Gold Up On Short Covering As Fed Events On Deck Wednesday May 22, 2013 8:10 AM
(Kitco News) - Comex gold futures prices are solidly higher in early U.S. trading Wednesday, on short covering and position evening ahead of U.S. Federal Reserve events that are likely to move the precious metals and other markets. Comex June gold last traded up $16.60 at $1,394.20 an ounce. Spot gold was last quoted up $19.80 at $1,396.25. July Comex silver last traded up $0.315 at $22.775 an ounce.
The market place is mostly on hold Wednesday morning, awaiting Federal Reserve Chairman Ben Bernanke’s speech on the economy and monetary policy before the Congress later in the morning. The Fed’s FOMC minutes are also due out Wednesday afternoon. Traders and investors will closely scrutinize Bernanke’s remarks and the FOMC minutes for clues on the U.S. central bank’s potential course of monetary policy in the coming weeks and months. There has been a growing belief in the market place that the Fed is aiming to wind down its quantitative easing program (QE3) sooner rather than later. The term presently bandied about is “tapering” of the Fed’s massive monthly bond-buying program. However, there is no clear consensus among market and Fed watchers regarding what the Fed will do with its monetary policy. There is now speculation that Bernanke on Wednesday will re-emphasize his commitment to easy money policies in the coming months. Such would be bullish for the commodity markets, including gold and silver.
Still the underlying reason for the drop is the fall in gold price , investors panic and move money elsewhere , often to rising shares which are possibly reaching the top of the cycle, I believe there is much more of an upside for returns in companies like Shanta and other goldies and miners, surely it makes sense to buy on the lows. The directors at Shanta have shown their confidence with plenty of buying.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.