Tuesday 21 May 2013

Gold slightly lower amid consolidation

Precious metals edge a touch lower, with ranges narrowing and prices consolidating after an erratic session Monday, which initially saw prices slump toward April lows, before dramatically reversing. The latter move,  was helped by a weaker U.S. dollar, which serves to lift the appeal of the dollar-denominated precious metals to buyers with other currencies. "All eyes will be on the release of the Federal Reserve policy meeting minutes Wednesday for further clues to plans on quantitative easing," Numis notes. A curtailing of QE would likely dent gold as a hedge against liquidity-fueled inflation and currency weakness, it adds. Spot gold is down 0.2% at $1,390.35/oz.

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