Investing.com – Gold futures regained strength on Thursday, as the previous day’s sharp drop created buying opportunities for investors, while expectations of further stimulus measures in the U.S. provided further support.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,841.15 a troy ounce during late Asian trade, jumping 1.45%.
It earlier rose as much as 1.75% to trade at a daily high of USD1,846.25 a troy ounce.
On Wednesday, gold futures fell nearly 3%, while spot gold prices lost almost 3.35% as strong gains in global equity markets bolstered market sentiment and dampened the safe haven appeal of the precious metal.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the global economic outlook.
Meanwhile, comments from Chicago Federal Reserve President Charles Evans provided further support after saying on Wednesday that the Fed should move “aggressively” to reduce unemployment, even at the cost of temporarily pushing inflation higher.
“Given how truly badly we are doing in meeting our employment mandate, I argue that the Fed should seriously consider actions that would add very significant amounts of policy accommodation,” he said.
Gold traders will be paying close attention to a speech from Fed Chief Ben Bernanke later in the day for any hints regarding further easing measures, while European Central Bank President Jean-Claude Trichet was to speak following the ECB’s rate decision later Thursday.
Also Thursday, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.
Global financial service provider UBS raised its 2012 gold price forecast by almost 50% to USD2,075 an ounce, citing “ongoing global macroeconomic disappointments,” it said in a report on Wednesday.
Elsewhere on the Comex, silver for December delivery rose 0.36% to trade at USD41.77 a troy ounce, while copper for December delivery shed 0.62% to trade USD4.112 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,841.15 a troy ounce during late Asian trade, jumping 1.45%.
It earlier rose as much as 1.75% to trade at a daily high of USD1,846.25 a troy ounce.
On Wednesday, gold futures fell nearly 3%, while spot gold prices lost almost 3.35% as strong gains in global equity markets bolstered market sentiment and dampened the safe haven appeal of the precious metal.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the global economic outlook.
Meanwhile, comments from Chicago Federal Reserve President Charles Evans provided further support after saying on Wednesday that the Fed should move “aggressively” to reduce unemployment, even at the cost of temporarily pushing inflation higher.
“Given how truly badly we are doing in meeting our employment mandate, I argue that the Fed should seriously consider actions that would add very significant amounts of policy accommodation,” he said.
Gold traders will be paying close attention to a speech from Fed Chief Ben Bernanke later in the day for any hints regarding further easing measures, while European Central Bank President Jean-Claude Trichet was to speak following the ECB’s rate decision later Thursday.
Also Thursday, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.
Global financial service provider UBS raised its 2012 gold price forecast by almost 50% to USD2,075 an ounce, citing “ongoing global macroeconomic disappointments,” it said in a report on Wednesday.
Elsewhere on the Comex, silver for December delivery rose 0.36% to trade at USD41.77 a troy ounce, while copper for December delivery shed 0.62% to trade USD4.112 a pound.