Black Friday Sale! Save huge on InvestingProGet up to 60% off

Gold gains on U.S. GDP data, talk of Fed stimulus

Published 07/27/2012, 02:14 PM
Updated 07/27/2012, 02:15 PM
GC
-
HG
-
SI
-
Investing.com - Gold prices rose in U.S. trading on Friday after lackluster gross domestic product rates fueled more talk of Federal Reserve stimulus even though growth figures met expectations.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.35% and trading at USD1,620.75 a troy ounce, up from a session low of USD1,610.75 and down from a high of USD1,628.55 a troy ounce early during the session.

Gold futures were likely to test support at USD1,610.75 a troy ounce, the earlier low, and resistance at USD1,628.55, the earlier high.

The U.S. economy grew 1.5% in the second quarter of the year, according to an advance estimate by the Commerce Department.

U.S. growth figures largely met expectations, which increasingly include Federal Reserve intervention down the road, likely through quantitative easing, which sees the U.S. central bank buy bonds from banks, pumping the economy full of liquidity in the process and weakening the dollar to spur recovery.

Gold and the dollar trade inversely, and mere talk of Fed easing can send the greenback falling and the yellow metal gaining.

Gold, meanwhile, tracked the euro higher as well.

The single European currency gained after ECB President Mario Draghi said he would do what it takes to save the euro.

French President Francois Hollande and German Chancellor Angela Merkel made similar comments, which bolstered the euro and sent the dollar falling.

Elsewhere on the Comex, silver for September delivery was up 0.54% and trading at USD27.593 a troy ounce, while copper for September delivery was up 0.97% and trading at USD3.426 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.