Los Angeles CA, March 20 (Tangible Investments) - by James O'Dell - Gold and Silver prices edged higher in early trading on Monday, with Gold up 0.28 percent to $1,232.30 an ounce after gaining $3.00 or 0.24 percent on Friday to end the week at $1,228.80 an ounce.
The price of Silver is up 0.09 percent to $17.39 an ounce after rising $0.08 or 0.46 percent on Friday to finish the week at $17.37 an ounce, while the Gold/Silver ratio fell to 70.74. Platinum is up 0.42 percent to $967.00 an ounce and Palladium is up 0.52 percent to $779.00.
Gold hit a two-week high in early trading on Monday as the dollar continued its slide following the Federal Open Market Committee (FOMC) meeting last week.
"The dovish outlook … following last Wednesday’s Fed meeting is clearly still having an impact. This is likely to lure a number of speculative financial investors back into Gold after this group massively reduced their net long positions in the run-up to the meeting," said Commerzbank in a note.
Market participants appear to have doubts that the FOMC will hike interest rates as aggressively as the Fed’s so-called dot plot, says Brown Brothers Harriman. “The FOMC statement and the forecasts simply confirmed the pace of normalization that had been previously signaled,” said BBH.
"Overall the geopolitical outlook still points to several hotspots … and we’re not going to see a focus on rate rises for the foreseeable future now because that’s out [of] the way. Over the next few weeks one has to favor the upside [in Gold]," said Saxo Bank's Ole Hanson.
Meanwhile, Stephen Roach, former Morgan Stanley Asia Chairman, said on Monday that he found it "disturbing" that the financial leaders of the G-20 were no longer supporting free trade and it reflects the growing protectionism in the U.S.
“It’s pretty disappointing when you get finance ministers from leading countries in the world who, out of the blue, are unable to validate the commitment to anti-protectionism which is the underpinning globalization,” said Roach, a senior fellow at Yale University’s Jackson Institute of Global Affairs.
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