Investing.com - Gold futures edged modestly lower in rangebound trade during European morning hours on Thursday, as investors continued to eye a speech by Federal Reserve Chairman Ben Bernanke on Friday, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,658.65 a troy ounce during European morning trade, easing down 0.12%.
Prices were stuck in a tight trading range of USD1,655.05 a troy ounce, the daily low and a session high of USD1,660.45 a troy ounce. Prices rallied to USD1,677.45 a troy ounce on August 27, the highest since April 13.
Gold futures were likely to find support at USD1,634.55 a troy ounce, the low from August 22 and near-term resistance at USD1,677.45, the high from August 27.
Investors adopted a wait-and-see approach ahead of the speech by the U.S. central bank chairman, which many hope will provide further clues about the potential for further U.S. stimulus.
Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.
Data on Wednesday showed that U.S. pending home sales rose to the highest level since April 2010 in July while a separate report showed that the U.S. economy grew at a faster rate than initially expected in the second quarter.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed would pump more money into the financial system.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 7% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Meanwhile, there are also expectations in the market that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
In an article published in German’s Die Zeit newspaper, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.
The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload”.
Later in the day, Italy was to auction 10-year bonds, in what would be a key test of investor appetite for the country’s debt.
Meanwhile, the U.S. was to release official data on personal income as well as a weekly report on jobless claims.
Elsewhere on the Comex, silver for December delivery shed 0.45% to trade at USD30.77 a troy ounce, while copper for December delivery rose 0.5% to trade at USD3.467 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,658.65 a troy ounce during European morning trade, easing down 0.12%.
Prices were stuck in a tight trading range of USD1,655.05 a troy ounce, the daily low and a session high of USD1,660.45 a troy ounce. Prices rallied to USD1,677.45 a troy ounce on August 27, the highest since April 13.
Gold futures were likely to find support at USD1,634.55 a troy ounce, the low from August 22 and near-term resistance at USD1,677.45, the high from August 27.
Investors adopted a wait-and-see approach ahead of the speech by the U.S. central bank chairman, which many hope will provide further clues about the potential for further U.S. stimulus.
Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.
Data on Wednesday showed that U.S. pending home sales rose to the highest level since April 2010 in July while a separate report showed that the U.S. economy grew at a faster rate than initially expected in the second quarter.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed would pump more money into the financial system.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 7% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Meanwhile, there are also expectations in the market that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
In an article published in German’s Die Zeit newspaper, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.
The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload”.
Later in the day, Italy was to auction 10-year bonds, in what would be a key test of investor appetite for the country’s debt.
Meanwhile, the U.S. was to release official data on personal income as well as a weekly report on jobless claims.
Elsewhere on the Comex, silver for December delivery shed 0.45% to trade at USD30.77 a troy ounce, while copper for December delivery rose 0.5% to trade at USD3.467 a pound.