Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold futures higher ahead of euro zone, U.S. data

Published 08/14/2012, 03:22 AM
GC
-
HG
-
SI
-
Investing.com - Gold futures were higher during European morning trade on Tuesday, rebounding from the previous session’s losses as investors positioned themselves in the precious metal ahead of the release of key economic data from the euro zone and the U.S.

Ongoing expectations that policy makers around the world will announce fresh stimulus measures to help spur weak global growth continued to support the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,615.75 a troy ounce during early European trade, gaining 0.3%.      

Prices were stuck in a narrow trading range of USD1,615.55 a troy ounce, the daily high and a session low of USD1,610.85 a troy ounce.

Gold futures were likely to find support at USD1,603.95 a troy ounce, the low from August 8 and near-term resistance at USD1,626.05, the previous session’s high.

Gold prices have been well-supported in recent sessions, amid ongoing expectations that central banks in the U.S., Europe and China will soon announce fresh stimulus measures to help spur growth in their respective economies.

Investors were eyeing the release of euro zone growth data later in the day, after a report earlier showed that Germany’s economy slowed less-than-expected in the second quarter.

Germany’s gross domestic product expanded by 0.3% in the three months to June, beating expectations for a 0.2% expansion and following an expansion of 0.5% in the first quarter.

A separate report showed that France’s economy stagnated in the second quarter, beating expectations for a 0.1% contraction.

Market participants will also be watching U.S. data on retail sales and inflation later in the day in an attempt to assess the strength of the U.S. economic recovery and the need for further stimulus.

Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would pump more money into the financial system.

Gold traders are already beginning to focus on an annual meeting of economists and central bankers in Jackson Hole, Wyoming, at the end of August, as well as the Fed's next policy meeting on September 12 and 13 for clues on the central bank's attitude towards a next round of bond purchases, known as quantitative easing.

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 11% 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.

Elsewhere on the Comex, silver for September delivery rose 0.55% to trade at USD27.92 a troy ounce, while copper for September delivery added 0.65% to trade at USD3.375 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.