We have updated our privacy policy and terms & conditions. Find out more here.
2
 

Gold firms above USD1,620 with ECB, Fed minutes in focus

By Investing.com  |  Commodities  |  Aug 21, 2012 07:25AM GMT  |   1 Comment
 
AA
+
-
Investing.com - Gold futures were little changed in rangebound trade during early European hours on Tuesday, as market sentiment remained supported by hopes of progress in tackling the debt crisis in the euro zone, ahead of a series of meetings this week.

Gold firms above USD1,620 with ECB, Fed minutes in focus
Market participants were also anticipating the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,623.25 a troy ounce during early European trade, adding 0.15%.      

Prices were stuck in a narrow trading range of USD1,618.95 a troy ounce, the daily low and a session high of USD1,624.35 a troy ounce, which was the strongest level since August 13.

Gold futures were likely to find near-term support at USD1,601.05 a troy ounce, the low from August 16 and resistance at USD1,629.25, the high from July 31.

Investors shrugged off remarks by German policy makers opposing the European Central Bank's plan to buy more government bonds.

Luxemburg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.

Meanwhile, German Chancellor Angela Merkel is to meet with French President Francois Hollande on Thursday, while Antonis Samaras is to meet with the French and German leaders later in the week.

On Monday, the European Central Bank dismissed reports that reports that it may set a cap on peripheral euro zone bond yields, saying it was "absolutely misleading" to report on decisions that have not yet been taken.

Market participants were also anticipating the minutes of the Fed’s August policy meeting later in the week.

Upbeat U.S. economic data released last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.

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.

Elsewhere on the Comex, silver for September delivery rose 0.6% to trade at a two-month high of USD28.77 a troy ounce, while copper for September delivery climbed 0.85% to trade at USD3.400 a pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Gold
 
 
 
Are you sure you want to delete this chart?
 
Comments
ilja waege
ilja waege Aug 21, 2012 07:50AM GMT
So gold raises on FED easing/stimulus? I see lillte need, numbers are climbing.
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg