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Gold futures rise in early Asian trade

Published 09/08/2011, 08:28 PM
Updated 09/08/2011, 08:31 PM
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Investing.com – Gold futures moved higher in Asian trade Friday, as downbeat comments from European and U.S. central bank leaders boosted the appetite for safe-haven investments.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,866.45 a troy ounce during early Asian trade, up 0.03%, after hitting a daily low of USDS1,861.75. 

Speaking at a post-policy meeting press conference in Frankfurt, European Central Bank President Jean-Claude Trichet said the euro-zone economy was facing “particularly high uncertainty and intensified downside risks.” 

The ECB left its benchmark interest rate unchanged at 1.5% after previous hikes in April and July, as second quarter euro-zone gross domestic product grew by a scant 0.2% in the second quarter.

The ECB revised down its outlook for economic growth for 2011 and 2012 and warned of "tightened" financing conditions in the single currency bloc.

Gold also got a lift from the U.S. Department of Labor report, released earlier Thursday, that the number of Americans that filed for unemployment benefits rose unexpectedly for the week ending September 2.

Jobless claims rose by 2,000 to a seasonally adjusted 414,000, above market forecasts of a decline to 405,000. The previous week’s figure was revised up to 412,000 from 409,000.

Safe-haven alternatives were additionally supported by a downturn on Wall Street where U.S. shares posted their fourth loss in the past five sessions.

The Dow Jones Industrial Average was down 1.04%, the Nasdaq Composite Index fell 0.78%, and the S&P 500 declined 1.06%.

Elsewhere on the Comex, silver for December delivery added 0.11% to trade at USD42.43 a troy ounce, while copper for December delivery rose 0.03% to trade at USD4.121 a pound.

 

 

 

 

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