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US Economy Boosts Both Copper & Gold

August 31, 2011 at 21:27 by Vladimir Vyun

Copper gained today as macroeconomic data from the US increased optimism about the US economy. Factory orders rose 2.4 percent in July, following the drop by 0.4 percent in June. The Chicago Purchasing Managers Index slipped, but still was above forecasts, showing business expansion for 23rd month. December futures for delivery of copper gained $0.063 (1.5 percent) to $4.2045 per pound by 13:27 on COMEX.

Gold rallied today, capping the biggest monthly advance since November 2009, as the minutes of the Federal Open Market Committee, released yesterday, showed that most policy makers voted for keeping interest rates extremely low till mid-2013. Three Committee members agreed about necessity to keep rates low for some time, but perhaps for shorter period than proposed by majority. The minutes spurred talks that the Federal Reserve would introduce additional stimulus for the US economy. More stimulus means cheaper dollar and higher gold prices, therefore traders, who expect additional round of quantitative easing, were buying gold. December contract for delivery of gold advanced $1.90 (0.1 percent) to $1,831.70 as of 13:56 on COMEX.

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

2 Responses to “US Economy Boosts Both Copper & Gold”

  1. emmkay

    On given speculation gold seems to cross all time high in near term! Doesn’t it wl be one more bubble?

    [Reply]

    enivid Reply:

    It IS bubble for years now.

    [Reply]

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