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Gold edges higher after jobless claims data; Bernanke in focus

Published 09/13/2012, 09:05 AM
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Investing.com - Gold futures edged higher in rangebound trade during U.S. morning hours on Thursday, after data showed the number of people applying for unemployment assistance in the U.S. last week rose more-than-expected.

Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the day for more clarity on the central bank’s monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,732.65 a troy ounce during U.S. morning trade, easing up 0.1%.      

Prices were stuck in a tight trading range of USD1,728.25 a troy ounce, the daily low and a session high of USD1,735.75 a troy ounce. Gold futures rallied to USD1,746.55 a troy ounce on Wednesday, the highest since February 29.

Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 6 and near-term resistance at USD1,761.85, the high from February 21.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000.

The previous week’s figure was revised up to 367,000 from a previously reported 365,000.

A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July.

The data came as markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.

Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.

The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation.

Elsewhere on the Comex, silver for December delivery shed 0.25% to trade at USD33.20 a troy ounce, while copper for December delivery dipped 0.15% to trade at USD3.686 a pound.

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