Gold appeals as an alternative investment
The FOMC Minutes yesterday revealed the Feds intentions to keep the benchmark interest rate at their historical low to endorse the American economy's gradual recovery. However, gold was the only precious metal to rise yesterday in New York trading, gaining 0.31% at $1134.30 per ounce after reaching the peak of $1139.90 per ounce.
Silver declined 0.89%, sided by platinum that fell by 0.23% but however managed to close with a gain in the London PM Fixing recording $1700.00 per ounce. The Fed's minutes seem to have bolstered demand for gold as an alternative investment, while other precious metals seemed to have accompanied the mixed performance of American stocks.
In New York trading, platinum closed at $1699.00 per ounce, while silver closed at $17.90 falling from the London Fixing of $17.92.
An upbeat day today for Asian stocks, as the low interest rates spread anticipation of a global economy expansion that would include Asian economies which in their part have been expanding keenly. Platinum had risen today by 1.18% for it is trading at $1719.00 at 02:03 EST, as a wave of demand swept through the market raising precious metals amid the speculative power dominating the market. Silver is trading at $17.98 while gold is trading at $1136.70 per ounce.
Precious metals have gained the appeal with gold acting as alternative investments, amidst high fluctuations in the commodity and currency markets; oil settles at levels above $86.00 per barrel. Precious metals have remained on their northern rout with gold climbing for the third consecutive day, despite the dollar's appreciation throughout yesterday and today's trading.
The general trend for precious metals today is expected to remain upward, coming under effect of demand forces. Still prudence should be maintained as corrective downward movements could be witness triggered by the dollar's appreciation.