Investing.com - Gold and silver futures were lower during European morning trade on Thursday, a day after rallying to one-month highs, though further upside was seen as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,625.25 a troy ounce during early European trade, slumping 0.55%.
It earlier fell by as much as 0.85% to trade at a session low of USD1,618.85 a troy ounce. Prices touched USD1,642.15 on Wednesday, the highest since May 7.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,647.85, the high from May 4.
Gold prices rose to a one-month high on Wednesday, amid growing speculation the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
“I am convinced that scope remains for the FOMC to provide further policy accommodation,” Yellen said.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
Gold prices have rallied on past monetary stimulus measures. Investors tend to pile in to the yellow metal on fears that excess liquidity would put a damper on the value of paper currencies and spark inflation. The precious metal is widely considered a hedge against inflation and a store of value.
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 9% since late February, amid growing concerns the European debt crisis has been escalating, which has fueled demand for the yellow metal's hedge, the greenback.
Market participants were also looking forward to a long-term government bond sale by Spain later in the day, amid growing fears over the deteriorating fiscal health of the euro zone’s fourth largest economy.
Elsewhere on the Comex, silver for July delivery declined 0.6% to trade at USD29.31 a troy ounce, while copper for July delivery slumped 0.95% to trade at USD3.348 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,625.25 a troy ounce during early European trade, slumping 0.55%.
It earlier fell by as much as 0.85% to trade at a session low of USD1,618.85 a troy ounce. Prices touched USD1,642.15 on Wednesday, the highest since May 7.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,647.85, the high from May 4.
Gold prices rose to a one-month high on Wednesday, amid growing speculation the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
“I am convinced that scope remains for the FOMC to provide further policy accommodation,” Yellen said.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
Gold prices have rallied on past monetary stimulus measures. Investors tend to pile in to the yellow metal on fears that excess liquidity would put a damper on the value of paper currencies and spark inflation. The precious metal is widely considered a hedge against inflation and a store of value.
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 9% since late February, amid growing concerns the European debt crisis has been escalating, which has fueled demand for the yellow metal's hedge, the greenback.
Market participants were also looking forward to a long-term government bond sale by Spain later in the day, amid growing fears over the deteriorating fiscal health of the euro zone’s fourth largest economy.
Elsewhere on the Comex, silver for July delivery declined 0.6% to trade at USD29.31 a troy ounce, while copper for July delivery slumped 0.95% to trade at USD3.348 a pound.