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Uncertainty About Fed Tampering Benefits Precious Metals

August 16, 2013 at 0:09 by Vladimir Vyun

Gold prices rose and silver surged today as the US dollar dropped. The Dollar Index dropped 0.5 percent to 1,020.16 yesterday. The currency weakened as traders were unsure if the Federal Reserve will reduce its stimulus program.

Most of yesterday’s US data was rather bad. It is true that jobless claims unexpectedly fell by 15,000 to 320,000 last week, but will this be enough for the Fed to consider stimulus tampering next month? Most investors felt uncertain about it and such doubts translated in weaker greenback and stronger precious metals. Technical analysts say that gold and silver have entered a clear upward trend.

December futures for delivery of gold rose $2.7 (0.2 percent) to $1,363.6 per troy ounce as of 00:07 GMT on COMEX today. September contract for silver jumped as much as $1.11 (5.09 percent) to $22.9 per ounce.

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

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