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Japan’s Stimulative Measures Help Precious Metals

December 27, 2012 at 2:09 by Vladimir Vyun

Gold and silver rallied on speculations that the new Japan’s government will take measures to stimulate the nation’s economy. Prime Minister Shinzo Abe was calling for a long time for more accommodative monetary policy. Indeed, the Bank of Japan expanded its asset purchase program at the first policy meeting after the elections that had brought Abe to power. The central bank also promised more aggressive easing in the future.

Precious metals usually profit from stimulative measures. The news from Japan definitely gave boost to silver, while gold also rallied, but trimmed its gains. Most other central banks across the world also ease their policies and that may bring metals higher. For now gold and silver are consolidating, pausing their decline, but not yet ready to rally.

Spot price of gold was up from $1,654.81 to $1,657.95 per troy ounce, while the daily high was at $1,667.73. Spot silver price advanced from $29.90 to $30.01 per ounce.

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

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