Rose gold futures during the European morning trade Wednesday, the current resistance level near the main market participants before the meeting of policy-making by the European Central Bank later in the day, amid hopes for more stimulus.Gold also rose after the possibility of speculation the Federal Reserve Ba take further measures to stimulate growth in the largest economy in the world.
In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for August delivery at 1628 USD for ounce during early European trading, up 0.75%.This rose earlier up to 0.85 to trade at the highest level during the session. At 1629 USD/Troy per ounce and total prices. $1631 day the first of June, the highest level since 8 May.
The gold futures likely to find support at 532.55, $ 1 an ounce, the lowest Mistoymund May 30 and the resistance in the near term at $1639.05, the highest level on 8 May.Commented investors hopes to take action on the part of the world’s central banks and other authorities to stimulate growth and boost the global economy, and enhance the attractiveness of the precious metal.: The price of gold has risen in the past on the impact of monetary stimulus measures. Where investors tend to buy the precious metal because of fears that the increased money supply will lead to the devaluation of paper currencies and raise inflation. The purchase of gold and a means of protection used by investors against inflation.
Finance ministers of the Group of Seven held over the phone call on Tuesday to discuss the crisis in the euro zone debt rising, but has been the formation of any agreements or master plans.The markets await meetings of the European Central Bank monetary policy later in the day.Although the consensus of the market to keep its key interest rate unchanged at 1%, there is some speculation by market participants that the ECB could announce to pump liquidity into the financial system in Europe’s troubled.Some expect that the central bank will renew the purchase of government bonds outstanding under the program to help ease the pressure on higher borrowing costs in Spain.
In addition, it will be Federal Reserve Chairman Ben Bernanke will present its report on Thursday before a congressional committee about the status of the U.S. economy. And gold traders will be watching any clues about the possibility of holding a new round of monetary easing, which is likely to hurt the dollar and gold support.According to The Wall Street Journal late Tuesday, citing interviews and letters to officials of the Fed, the U.S. central bank considering new measures to stimulate growth in the largest economy in the world.He called Charles Evans, President of the Federal Reserve Bank of Chicago in the earlier aggressive policy easing in the United States, citing the recent soft economic data.
The quantitative easing a major driver to the upside for gold, because it keeps interest rates and lower borrowing costs, making gold more attractive compared to the revenue or profit-bearing assets such as bonds and equities.Gold rose by 15% earlier this year to score 1790 dollars an ounce after the Fed’s decision to keep interest rates unchanged near zero in January and until at least late 2014 and pointed out that it can provide tour new asset purchases.However, prices have lost almost 9% since late February, amid growing fears of debt crisis of the European Almtassaadh, which has increased the demand for hedge of Gold, and the dollar