Gold last traded at $1,260 an ounce. Silver at $16.57 an ounce.
NEWS SUMMARY: Precious metal prices steadied near 6-week highs Thursday on expectation of further dollar weakness. U.S. stocks pulled back despite upbeat earning reports as tech investors decided to take profits.
Gold rises to six-week high as dollar drops after Fed statement –Reuters
“Gold rose for a second day on Thursday, hitting a six-week high as the dollar dropped to a 13-month low after the U.S. Federal Reserve indicated it would keep to a slow path of monetary tightening. The Fed’s statement followed a two-day policy meeting that ended on Wednesday where the central bank kept interest rates unchanged but expected to start winding down its massive holdings of bonds ‘relatively soon’. The decline in the greenback is a boon for dollar-denominated gold since it makes buying the metal less expensive for investors paying in other currencies. ‘We think that gold has turned something of a corner and may now be in a position to retest its recent highs,’ said INTL FCStone analyst Edward Meir. ‘With the Fed now likely on hold at least till the end of the year and U.S. bond yields falling, there are some forming tailwinds that should propel prices higher over the short term,’ Meir said.”
The Dollar’s Slow Demise Continues in Plain Sight –DailyReckoning
“‘The end of the world’s present monetary system is already taking place,’ says one of Mexico’s leading, hard-money economists, Hugo Salinas Price. ‘The U.S. is losing influence in the world… The end of the dollar as the basis of the international monetary system means the end of the U.S. as we have known it.’ You may or may not know of Salinas Price, but he’s a serious player at high monetary levels….He’s a Mexican business magnate and founder of the Mexican retail chain, Elektra. He also happens to be a historian of money. According to Salinas Price, ‘The present monetary system of the world, based on the dollar, is on its death-bed. A fiat currency – such as the dollar – cannot be replaced by another fiat currency,’ he explains. ‘Therefore, the world will necessarily have to take up (precious metals) as the world’s money.’….Gold and silver are making a monetary comeback. We’re fast approaching a new monetary tipping point. The next global trading system is already setting up, in plain sight, as long as you follow the facts and note who is buying gold bars, and where that metal is heading. What can the individual investor do? Well, if you don’t hold physical precious metal, get some.”
The Dollar’s Slow Demise Continues in Plain Sight –DailyReckoning
