Gold Rises in Volatile Trading, Potential Fed Action
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As the yield curve steepens, investors are seeing a rise in gold prices today.
June contracts, the most actively traded, are up $13.1 to $1,392.0 per ounce on the Comex.
Yields on 10-year Treasuries are off about 4 basis points to 2.14 percent, still at the highest levels in about 13 months.
Despite the move higher on a weaker dollar today, traders should take some caution as recent improvements in U.S. economic data may have the Fed taper quantitative easing plans early. Should that happen, the dollar is going to strengthen and increase the cost of gold to outside currencies.
Buyers in Asia are also active. Reuters noted today that premiums in Singapore were a record $7 per ounce over spot prices in London, while futures prices in Shanghai were higher by about $25 per ounce.
Many are keeping an eye on SPDR Gold Trust (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) as June contracts are set to expire on Thursday.
June contracts, the most actively traded, are up $13.1 to $1,392.0 per ounce on the Comex.
Yields on 10-year Treasuries are off about 4 basis points to 2.14 percent, still at the highest levels in about 13 months.
Despite the move higher on a weaker dollar today, traders should take some caution as recent improvements in U.S. economic data may have the Fed taper quantitative easing plans early. Should that happen, the dollar is going to strengthen and increase the cost of gold to outside currencies.
Buyers in Asia are also active. Reuters noted today that premiums in Singapore were a record $7 per ounce over spot prices in London, while futures prices in Shanghai were higher by about $25 per ounce.
Many are keeping an eye on SPDR Gold Trust (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) as June contracts are set to expire on Thursday.
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