Expert Analysis for Gold and Silver Futures Trading

Expert Analysis for Gold and Silver Futures Trading    Gold hit an 18-month high on Wednesday as the dollar slid near one-year lows against the euro, sparking buying of the yellow metal as an alternative asset and helping lift silver and platinum to multi-month peaks. Silver prices hit a 13-month high of $17.45 an ounce, and settled at 17.375, up by 2.34 percent.

Gold Fields, the world's No. 4 gold producer, said on Wednesday it expects to lift its annual gold output from South America to 1 million equivalent ounces in the next five years.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings rose to 1,086.479 tonnes as of Sept. 16, up 7.628 tonnes or 0.7 percent from the previous business day.

Newmont Mining Corp said on Wednesday that gold selling at over $1,000 an ounce was good, but that the company's focus was on developing projects that would still be profitable if the gold price dropped.

At the annual Denver Gold Forum, the Gold Fields chief executive officer told Reuters he sees gold hitting $1,600 an ounce if crude oil goes to $100 a barrel in the next six to 18 months.

India's gold collection under exchange-traded funds rose by 10 percent on year to 6.296 tonnes in August, data from the funds showed. The most-traded gold ETF of Benchmark Mutual Fund traded within a striking distance of the psychological 1,600-rupees-mark (per gram) after a weak dollar overseas spurred buying in the alternative asset.

U. S. industrial production rose for the second straight month in August, while higher gasoline costs pushed up consumer prices, reinforcing hopes a recovery was underway.

Gold is expected to trade sideways to up in today’s session after posting remarkable gains yesterday. We expect that any weakness in initial claims numbers today may be overshadowed by strong housing numbers, pressurizing dollar and lending support to bullions. Silver looks good for the day. We recommend going long in Silver.