News reports Wednesday said the Pimco investment fund is adding to its Gold holdings because it believes inflation will rise in next few years
US Gold futures prices are higher Wednesday, and hit a 4-month high, following a Bullish reading of the minutes of the last meeting of the Federal Reserve's Federal Open Market Committee.
The Gold and Silver bulls have also gained the Northside near-term technical momentum.
Dec Gold last traded + 13.50 at $1,656.40 oz.
Spot Gold was last quoted + 11.40 at 1,654.30 oz.
Sept Comex Silver last traded + 0.316 at $29.83 oz.
The minutes of the last FOMC meeting showed members believe that further quantitative easing of monetary policy will be required if the US economy does not show improvement soon.
The precious metals were boosted to their daily highs on the news, and the USD index sold off to its daily low.
The market was surprised by the meeting minutes that hinted such is indeed the case. Most market watchers are now looking ahead to next week's annual Jackson Hole Federal Reserve meeting, which will feature remarks from US Fed Chairman Ben Bernanke.
It is either at that time or at the mid-September FOMC meeting that many hope the Fed announces a new QE-3.
In overnight news: European stock markets were weaker ahead of meetings between Greek and European Union officials later this week. Greece's prime minister says his country needs more time to implement austerity measures. A 2-yr German note auction overnight fetched no yield, which suggests investors in Europe remain uncertain and seeking safer-haven assets.
Traders and investors are awaiting the September 6 monthly press conference of European Central Bank President Draghi, at which time he is expected to unveil some new initiatives to support financially troubled EU countries.
The USD index weakened in late trading Wednesday hit a 7 wk low following the FOMC minutes. The "Greenback Bulls" are fading as a 4 wk-old downtrend line is in place on the daily bar chart.
Crude Oil prices were slightly higher Wednesday afternoon after marking a 3 month high Tuesday. Crude Oil Bulls have the Northside near-term technical momentum in here.
WTI Crude Oil 97.30 +0.46 (0.48%)
The precious metals markets continues to look closely at how these 2 Key outside markets"trade on a daily.
The London PM Gold fix is 1,642.00 vs the prior London PM fix at 1,639.50.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.