This week bullion prices began to rise in quiet conditions, with gold rising more than 6%. Trading patterns have changed, with much of the rise coming during U.S. trading hours, confirming that the short positions on Comex are being squeezed.
Global central bankers led by Federal Reserve officials said they are still a long way off from tightening monetary policy, seeking to calm investors unnerved by the Fed’s push toward curtailing bond-buying.
Bank of Japan Governor Haruhiko Kuroda said he sees no need to expand monetary stimulus immediately in an official BOJ statement made last night. The equity markets are selling off this morning mainly on that "disappointment."
Gold prices jumped on Monday in reaction to the unexpected contraction in the U.S. May ISM manufacturing data to 49 from last month's 50.7, giving the market hopes that the Fed will continue its stimulus.
Russia left its main interest rates unchanged for an eighth month, brushing off government calls for lower borrowing costs and repeating an incremental cut to seldom used rates after inflation accelerated last month.