Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold steadies amid ongoing talk of Fed stimulus

Published 04/09/2012, 08:04 PM
Updated 04/09/2012, 08:06 PM
GC
-
HG
-
SI
-
Investing.com - Gold prices were steady in Asian trading Tuesday, tapping the brakes on another day of gains from concerns the Federal Reserve will feel compelled to kick-start economic growth through monetary stimulus measures that traditionally send gold rising.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.02% at USD1,643.55 a troy ounce in Asian trading on Tuesday.

Gold futures were likely to test support at USD1621.25 a troy ounce, Thursday's low, and resistance at USD1,682.65, Tuesday's high.

Dismal jobs data hit the wire in the U.S. last Friday when the Bureau of Labor Statistics reported the economy added a net 120,000 nonfarm payrolls in March, well below the range of most market expectations.

The government revised February’s payrolls to 240,000 from 227,000, but cut January's figure by 9,000 to 275,000.

The numbers fueled sentiments that the Federal Reserve may consider stimulating the economy by buying bonds from banks, known as quantitative easing, under which the Fed pumps liquidity into the economy in a way that weakens the dollar in exchange for increased job creation.

Liquidity injections both weaken the dollar and spur inflationary pressures as well, a healthy cocktail for rising gold prices.

Federal Reserve Chairman Ben Bernanke appeared in public in the U.S. on Monday, not long before Asia's Tuesday opening, addressing financial stability but largely avoided monetary policy.

Elsewhere on the Comex, silver for May delivery was up 0.30% and trading at USD31.618 a troy ounce, while copper for May delivery was up 0.58% and trading at USD3.735 a pound.






Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.