Gold Rebounds, Central Banks Meetings Eyed
ICN.com | Mar 05, 2013 04:10AM ET
Gold prices rebounded on Tuesday after four consecutive sessions of declining ahead of the anticipated monetary decisions from major central banks, with expectations to stick to their loose monetary policies at their meeting on Thursday, reviving bullions` inflation-hedge appeal.
Spot gold is trading around $1580.63 per ounce by 09:29 (GMT+2) after opening at $1574.31, hitting a high of $1582.71 and a low of $1574.21 an ounce.
Silver traded at $28.88 an ounce after opening at $28.47, hitting high at $28.92 and low at $27.94 an ounce.
European Central bank (ECB), the Bank of England (BOE) and Bank of Japan (BOJ) will hold their policy meetings later this week, and are expected to maintain their monetary stance.
Loose monetary policies adopted by central banks have supported gold`s rally, as investors fearing higher inflation as a result of such policies resort to bullions as a hedge against inflation.
The euro remained weak on Tuesday after eurozone’s finance ministers meeting yesterday. Ministers refused to rule out a bailout deal for Cyprus even after concerns over signs of capital flight from the island, and said the talks over Cyprus aid package will drag on until late March.
However, the 17-country bloc representatives for finance cleared the path for somewhat lissome recession after $85 billion of spending cuts kicked in on Friday.
As of 09:29 (GMT+2), the dollar index hovered around 82.11 after opening at 82.18, where it hit a high of 82.20 and a low of 82.00.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.