Weak dollar imparts shine to precious metals
Bullion metals ended the U.S. day session moderately higher on Tuesday, 08 April 2014. Gold prices closed back above the key $1,300.00 level and hit a two-week high on Tuesday. The yellow metal was boosted on some safe-haven buying interest and by solid losses in the U.S. dollar index. Gold futures climbed back above $1,300 an ounce on Tuesday to settle at their highest level in two weeks as headlines out of Ukraine continued to rattle investors.
Gold for June delivery climbed $10.80, or 0.8%, to settle at $1,309.10 an ounce on the Comex division of the New York Mercantile Exchange.
May silver added 15 cents, or 0.8%, to $20.057 an ounce.
The Russia-Ukraine matter is back on the front burner of the market place. Pro-Russian demonstrators in Ukraine are becoming more active this week. This situation could flare up quickly and once again become a geopolitical flash point. Gold saw a bit of fresh safe-haven demand on Tuesday due to the increase in Russia-Ukraine tensions.
The U.S. dollar index is under strong selling pressure early this week as the greenback bulls are fading again. If the dollar index continues to sink it would remain a bullish underlying factor for the commodity markets.
Traders and investors are looking ahead to Wednesday afternoon's release of the minutes of the latest meeting of the Federal Reserve's Open Market Committee (FOMC).
U.S. economic data released Tuesday included the IMF world economic outlook forecasts, NFIB small business index, and the weekly Goldman Sachs and Johnson Redbook retail sales reports. None of this data had a significant impact on the market place. Federal Reserve officials were again on tap to speak on Tuesday, which will garner the attention of the market place.
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