Gold settles above 1580 dollars an ounce in Asian trading

Gold price technical analysis 17 - June, 2013


Gold settled over 1580 USD/Troy per ounce in Asian trading on Friday with investors clung to the hope of further monetary easing from the U.S. central bank after weak data in the previous session, but the recovery of the dollar is likely to limit the gains of the precious metal.

The latest data showed that factory activity in the area of the eastern United States shrank in July for the third month in a row, while they recorded the new unemployment jobless jump last week.

Earlier this week, said Ben Bernanke Federal Reserve Chairman said the U.S. central bank is ready to take action if economic conditions worsened but did not give strong hints about another round of quantitative easing would enhance the attractiveness of gold on expectations of rising inflation.

The discount price of gold for immediate sale at 1582.64 USD/Troy an ounce, and increased U.S. futures of gold for August delivery 0.13% to 1582.50 USD/Troy an ounce, and analysts draw a bleak picture for gold in the short term.