Investing.com - Gold futures soared in the early part of Thursday’s Asian session after the Federal Reserve said Wednesday it continue purchasing of USD85 billion per month in U.S. Treasuries and mortgage-backed securities over the near-term.
On the Comex division of the New York Mercantile Exchange, gold futures for September delivery climbed 1.12% to USD1,327.65 per troy ounce in Asian trading Thursday. Gold futures were likely to find support at USD1,269.45 a troy ounce, the low from July 17, and resistance at USD1,340.15, last Friday's high.
In a monetary policy statement, the Fed said the U.S. economy continues to plod along, but that it also needs support. Bernanke previously rocked commodities markets when he said in May that the central bank would consider tapering its bond-buying program at some point this year.
Stimulus programs such as the Fed's USD85 billion monthly asset-purchasing plan tend to weaken the dollar to spur recovery, making gold an attractive hedge, and talk of their dismantling can hamper dollar-denominated commodities such as gold.
In U.S. economic news out Wednesday, the Commerce Department said the U.S. economy grew 1.7% in the second quarter. The first-quarter growth rate was revised down to 1.1% from 1.8%. The average for the last 12 months remained at 1.4%.
The ADP private payroll survey showed non-government employers added 200,000 jobs last month. Analysts expected the addition of 180,000 new jobs. The Labor Department delivers the July non-farm payrolls report Friday.
Chicago area PMI rose to 52.3 this month from 51.6 in June. Economists expected a July reading of 54. Readings above 50 indicate expansion.
Elsewhere, Comex silver for September delivery rose 0.94% to USD19.793 per ounce while copper for September delivery fell 0.30% to 3.110 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for September delivery climbed 1.12% to USD1,327.65 per troy ounce in Asian trading Thursday. Gold futures were likely to find support at USD1,269.45 a troy ounce, the low from July 17, and resistance at USD1,340.15, last Friday's high.
In a monetary policy statement, the Fed said the U.S. economy continues to plod along, but that it also needs support. Bernanke previously rocked commodities markets when he said in May that the central bank would consider tapering its bond-buying program at some point this year.
Stimulus programs such as the Fed's USD85 billion monthly asset-purchasing plan tend to weaken the dollar to spur recovery, making gold an attractive hedge, and talk of their dismantling can hamper dollar-denominated commodities such as gold.
In U.S. economic news out Wednesday, the Commerce Department said the U.S. economy grew 1.7% in the second quarter. The first-quarter growth rate was revised down to 1.1% from 1.8%. The average for the last 12 months remained at 1.4%.
The ADP private payroll survey showed non-government employers added 200,000 jobs last month. Analysts expected the addition of 180,000 new jobs. The Labor Department delivers the July non-farm payrolls report Friday.
Chicago area PMI rose to 52.3 this month from 51.6 in June. Economists expected a July reading of 54. Readings above 50 indicate expansion.
Elsewhere, Comex silver for September delivery rose 0.94% to USD19.793 per ounce while copper for September delivery fell 0.30% to 3.110 per ounce.