“The recent slump in precious metals has not dampened Intrepid’s enthusiasm in them; we see it as a terrific time to buy!” IEG Partner
Gold and silver slumped to the lowest since 2010 Friday as the dollar strengthened after the Bank of Japan unexpectedly boosted stimulus and the Federal Reserve ended asset purchases this week.
The Fed is weighing the timing of interest-rate increases as other central banks add to stimulus to bolster their economies. The Bank of Japan Friday raised its annual target for enlarging the monetary base to 80 trillion yen ($723 billion), up from 60 trillion to 70 trillion, sending the yen to a six-year low against the dollar. Gold yesterday erased the year’s advance after U.S. gross domestic product beat estimates.
“Japan basically pushed gold over the edge as it triggered a major risk-on move,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, via email Friday. Japanese stimulus, the Fed decision to stop bond buying and dollar strength have “been more than the market could cope with this week.”
Gold futures for December delivery fell 2.3% to $1,171.60 an ounce at 1:50 p.m. ET on the Comex in New York, after touching $1,160.50, the lowest for a most-active contract since July 2010.
Silver futures for the same delivery month dropped as much as 4.8% to $15.635, the lowest since February 2010.
Gold dropped 4.9% this week, the most since September 2013. The metal also declined 3.3% in October to post consecutive monthly losses for the first time this year. Prices have lost 2.6% in 2014. Prices slumped 28% last year, the most in three decades.
Read More At Investor’s Business Daily: http://news.investors.com/investing-futures/103114-724462-gold-silver-hit-multiyear-lows-greenback-rises.htm#ixzz3K1adm1Hj
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