Madrid (July 10) Gold prices jumped sharply on Thursday for a second straight day of gains, while stock futures tumbled as the reality of the Federal Reserve’s end to its bond-buying program began to gel with investors.
At last check, gold for August delivery GCQ4 +1.49% was up $17.70, or 1.3%, to $1,341.60 an ounce. September silver SIU4 +2.31% added 50 cents, or 2.4%, to $21.54 an ounce.
A day earlier, gold rallied for the first time in four sessions, with investors using the minutes from the Federal Open Market Committee as an excuse to go long. U.S. stock futures tumbled in early action Thursday, with European stocks also falling sharply.
Analysts said there may be some reality hitting after the Fed laid out its plans to end its bond-buying program in the minutes of the Federal Open Market Committee meeting, released Wednesday.
On the economic front Thursday, initial weekly unemployment claims will be released early, followed by monthly wholesale trade numbers, out at 10:00 a.m. Eastern Time. After the market closes, Fed Vice Chairman Stanley Fischer will share some words.
Jim Wyckoff of Kitco says traders have also turned their attention overseas. “Gold may be seeing some safe-haven demand due to the latest military action by Israel,” he said. “This situation is a potential powder-keg that could further incite unrest in other parts of the Middle East.”
Elsewhere in metals trading, October platinum PLV4 -0.34% PLV4 -0.34% jumped $14, or 0.9%, to $1,520.40 an ounce, while September palladium PAU4 +0.37% rose $3.45, or 0.4%, to $876.05 an ounce. A protracted strike in South Africa continues to provide a tailwind for prices.
Neptune Global Update as of July 10, 2014 at 09:37 EST
Gold YTD Return 11.35%………………….Return since January 1, 2009 54%
PMC Ounce YTD Return 12.65%…………Return since January 1, 2009 84%