Rally of Gold & Wheat on Hopes for Growing Demand
Gold gained yesterday as talks about a new round of quantitative easing from the Federal Reserve reemerged. Last employment data was very bad, causing Federal Reserve Bank of Chicago President Charles Evans to talk about various measures for bolstering employment growth. Stimulating measures should weaken the dollar and spur inflation, boosting the precious metal. Gold was up from $1,594.10 to $1,610.30 on COMEX yesterday.
Wheat rose today, paring yesterday’s losses, on forecast that output will decline and global inventories will shrink. The US Department of Agriculture Inventories predicted that world stockpiles will total 185.76 million metric tons by the end of the marketing year, compared to the May estimate of 188.13 million tons. The estimate for production fell to 672.06 million tons, down from last month’s prediction of 677.56 million tons. Wheat rose from $6.1625 to $6.1850 per pound on CBoT today.
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