Today’s sample of Futures Analysis from FuturesHound.com
December Gold surged to a new all-time high after the Reserve Bank of India purchased 200 metric tons of gold from the International Monetary Fund. The purchase was worth about $6.7 billion. Traders at first were hesitant to drive this market higher until it became clear that this transaction could be the start of additional buying by other central banks.
The U.S. Dollar managed to hold on to its gains despite the strong rally in the gold market. While the weaker Dollar has been blamed for the August to October rally in gold, stronger gold is no expected to drive the Dollar to new lows. The fundamentals have shifted. The Dollar is getting stronger because of investor aversion to risk while gold is up because of central bank demand.
Trading has been thin and rangebound this week ahead of tomorrow’s Fed meeting and Thursday’s European Central Bank and Bank of England meetings. Investors are looking for the Fed to leave interest rates at historically low levels, but it may reveal a few hints as to how it plans to exit from their stimulus programs. Interest rate traders are betting that the Fed will not hike rates until sometime after April.
Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis
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Gold Takes the Spotlight Today
Posted - November 03 2009 : 18:03:54
