By: FX Empire
After an early-session steep decline, Comex gold futures are now trading significantly higher. The early session sell-off was in response to trader reactions to the failure of the Swiss referendum to increase Swiss National Bank gold reserves; although the vote to not increase the reserves from 7% to 20% was anticipated, the market still dove nearly 2% as a result.
"We didn't think that vote was going to pass. Nobody thought that, but they've cleared the air," explained George Gero of RBC. He continued on to say that what brought gold back was the fact that there are three continents that have to stimulate their economies. The market was being pulled by buyers who are bargain hunters wanting to take advantage of the plunge in the price of gold, and then it was pushed back again by the dollar, as well as by deflation.
Comex gold futures for February hit $1,221 per ounce and then settled with a gain of 3.6% to $1,281. This has been the biggest swing since April of 2013. Continue reading "Gold Futures Rise Above $1,200 as Demand for the Metal Rises"