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Gold & Silver Rally on Anticipation of QE from BoJ

January 21, 2013 at 18:26 by Vladimir Vyun

Gold rallied today, trading near the highest level in a month. Silver also gained, heading to the longest rally in a year.

The metals advanced on expectations of quantitative easing (QE) in Japan. The Bank of Japan started its two-day meeting today and will announce its monetary policy decision tomorrow. It is widely expected that the central bank will yield to demands of the new government and will ease its monetary policy further. QE is usually viewed as a positive factor for precious metals.

It is somewhat worrying that the yen did not fall on anticipation of QE. The strong currency is detrimental for the Japanese economy and is bad for gold as it has attracted investors interested in safety, luring them away from the precious metal.

Futures for delivery of gold in February climbed $2.5 (0.15 percent) to $1,689.60 per troy ounce as of 18:22 GMT on COMEX today. March contract for silver advanced $0.08 (0.26 percent) to $32.03 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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