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Published on Oct 18, 2016
KITCO
NEWS - After hitting a seven-month high at the start of the week, the
U.S. dollar saw a corrective pullback on Tuesday, which has benefitted
gold prices. Axel Merk, founder of California-based Merk Investments,
said the end of the dollar's dominance may be unfolding - not because of
another currency but rather because of money market funds. This, he
says, is good news for gold. On the topic of the Fed rate hike, Merk
said, 'If the markets have a fit, they're not going to hike. If the
markets are going to have smooth sailing until December, 'yes,' we'll
hike,' Merk said. Regarding Thursday's much anticipated ECB meeting,
Merk said, 'Draghi is reasonably happy where things are - the market is
pricing in continued easing.' Gold and silver prices ended the U.S. day
session moderately higher. Short covering in the futures market and
perceived value-buying in the cash market were featured Tuesday.
December Comex gold settled at $1,262.90 an ounce, up 0.5% on the day.
December Comex silver settled nearly 1% higher at $17.638 an ounce.
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