Commodities trading outlook: gold up on growth concerns, copper follows oil higher

Gold edged up to trade above $1 280 an ounce on Tuesday as global growth concerns boosted demand for the metal, but investors remained cautious as they assessed the possibility of a US rate hike. Silver, platinum and palladium rose as well. Copper gained as a rebound in oil prices led to a broader advance in commodities. Comex gold for delivery in April climbed 0.41% to $1 282.1 per troy ounce by 10:30 GMT, shifting in a daily range of $1 286.5-$1 272.0. The precious metal fell 0.18% to $1 276.9 on Monday. Projections of slowing global growth have prompted the European Central Bank to introduce a stimulus program in order to fight deflation in the region and jump-start economic development. However, the move caused volatility in European markets, additionally boosted by the recent Greece elections, pushing investors to seek the safety of the metal. Despite rising worries about a sooner US interest rate increase by the Federal Reserve, the precious metal has jumped 8% so far this year, after it scored its biggest monthly increase in thee years in January. Fed officials boosted their outlook for US economic growth to “solid” at FOMC’s last meeting, but recent downbeat data … continue reading

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Source: CTRM Center

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