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Investors Run to Safety of Gold & Silver

January 31, 2017 at 23:44 by Vladimir Vyun

Prices for gold and silver soared today as the dollar fell while demand for safe haven assets increased. The week has started poorly for the US currency after US President Donald Trump banned immigration from seven countries with Muslim majority, resulting in protests across the United States, condemnation from some foreign governments, and all that leading to confusion on markets. Experts explained that under such circumstances gold has become one of the favorite options for investors seeking safety.

The Federal Reserve will announce its monetary policy decision tomorrow. While market participants do not expect any changes to interest rates, they will closely watch the tone of the Fed’s statement. For a long time, the hawkish outlook for the central bank’s policy has been a major detrimental factor for the performance of gold and other precious metals. But the controversial ruling style of the new US President and the resulting shocks made analysts think that the Fed will express more cautious approach to its decisions under the current circumstances.

Gold for delivery in April traded at $1,212.40 per troy ounce after rising 1.3% on COMEX during Tuesday’s trading session. March contract for silver traded at about $17.57 per ounce following the 2.8% jump to $17.64.

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

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