Expert Analysis for Gold and Silver Futures Trading

Expert Analysis for Gold and Silver Futures TradingGold reversed early losses to post moderate gains on Tuesday, turning up when the dollar reversed its early advance. Gold also got support from a strong U. S. retail sales reading that implied economic growth and possible inflationary environment down the road.

Silver outperformed gold as it rose by over 2 percent, compared with over 0.5 percent rise in gold on COMEX as well as on MCX.

U. S. producer prices rose more than twice as much as expected in August on the biggest surge in gasoline prices in more than 10 years. Prices declined less than expected compared with a year ago, a government report showed.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,078.851 tonnes as of Sept. 15, unchanged from the previous business day.

Silver has outperformed gold this year as investors flocked to precious metals in the economic downturn and silver producers can look forward to good times ahead, the head of Coeur d'Alene Mines said on Tuesday.

The U. S. dollar edged lower against a basket of currencies as gains in global stock markets reduced the greenback's appeal as a safe haven.

The price of gold, which recently pushed through the $1,000-per-ounce barrier, could keep rising and reach $1,200 by the end of the year, the chief executive of Canadian producer IAMGOLD Corp said on Tuesday.

In an update to its 2009 Gold Report, metals consultancy GFMS said late on Monday that gold prices are likely to correct after their recent run higher, but could rebound as high as $1,100 an ounce in the next six months.

We expect gold to edge up higher during the day backed by the continued weakness in the dollar. The focus would be on U. S. Consumer price index number, reflecting the inflationary status. Any signs of a rise in inflation will add support to gold prices. Silver too is likely to follow the upside. We recommend going long in gold and silver at dips.