Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Gold rises as market brushes off Bernanke silence

Published 06/08/2012, 02:02 PM
GC
-
HG
-
SI
-
Investing.com - Gold prices rose in U.S. trading Friday, erasing earlier losses sustained after Federal Reserve Chairman Ben Bernanke offered little guidance as to whether the U.S. central bank was planning to jolt the economy via monetary stimulus.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.34% at USD1,593.45 a troy ounce.

Gold hit at a low of USD1,559.35 a troy ounce and a high of USD1,594.55 a troy ounce during the session.

Gold futures were likely to test support at USD1,546.35 a troy ounce, the low of June 1, and resistance at USD1,630.35, the high from June 7.

Federal Reserve Chairman Ben Bernanke appeared before Congress on Thursday to discuss the health of the U.S. economy and whether or not quantitative easing measures would be needed to spur recovery.

"The Federal Reserve remains prepared to take action as needed to protect the U.S. economy in the event that financial stresses escalate," Bernanke told the Joint Economic Committee, which gave investors little guidance.

Under quantitative easing, the Fed buys bonds from banks, pumping them full of liquidity in a manner than pushes long-term interest rates down low to encourage investment and hiring.

Under such a scenario, the dollar weakens and gold rises, and Bernanke's initial comments sent gold falling, as hopes were building the Fed would move, though the metal gained by mid-session trading on Friday.

The Federal Reserve will hold a monetary policy meeting on June 19-20, where more guidance could emerge.

Talk that Spain will need financial assistance bolstered the yellow metal, which serves as a hedge to traditional paper currencies, notably the dollar but at times to the euro as well.

Elsewhere on the Comex, silver for July delivery was down 0.21% and trading at USD28.470 a troy ounce, while copper for July delivery was down 2.27% and trading at USD3.294 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.