The U.S. dollar index, which tracks the performance of the greenback against a basket of currencies, is trading near an 11-month high. Meanwhile, equity markets remain under pressure due to global economic uncertainty.
Investors’ sentiment has been weighed down by the lack of action from the Federal Reserve. On Tuesday, the Fed released its monetary policy statement. The Fed said that it will not implement any fresh measures to stimulate the U.S. economy. Although the Fed was not expected to announce any fresh measures, investors were hoping for any hint on future monetary easing to boost the economy.
Meanwhile, an Italian bond auction earlier today once again underscored the fact that Friday’s EU deal is not sufficient to stem the debt crisis in the euro zone.
Ong Yi Ling, analyst at Phillip Futures, told Reuters that if we see weak demand for bond sales in Italy and Spain, it will again fuel concerns about the debt problem in Europe and cause a further sell-off in markets.
At last check, spot gold prices were up 0.4% to $1,637.80 an ounce. On Tuesday, prices fell 2%, hitting a low of $1,622.14 an ounce, the lowest level since October 21.
Gold futures for delivery in February had settled at $1,663.10 an ounce on the Comex division of the New York Mercantile Exchange.
Spot silver prices are also marginally higher in early trading. At last check, spot silver was up 0.3% to $30.84 an ounce.
The iShares Silver Trust (ETF) (NYSE: SLV) is down 2.31% to $29.15 in pre-market trading, while the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 4.95% to $49.78 in pre-market trading.
The ProShares UltraShort Silver (ETF) (NYSE: ZSL),which takes a short position on silver, is up 4.58% to $14.39 in pre-market trading. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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