Futures fell for gold and silver to their lowest levels during the European morning trade Thursday, after rising over the month to their highest levels, with hopes Aanakad hopes for further stimulus measures by the world’s central banks to stimulate the global economy.In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for August delivery at1652 USD/troy per ounce during the early European trading, down 0.55%.
Gold had been dropped earlier by 0.85% to trade at the lowest level in the session at 1, 618.85 dollars an ounce. Amounted to price, 642.151, dollars per ounce on Wednesday, its highest level since May 7.The gold futures likely to find support at 546.35, $ 1 an ounce, LED level since June 1, and in the near term resistance at 1647, USD/Troy an ounce, the highest price since May 4.
Gold prices rose to its highest level in one month on Wednesday, amid growing speculation that the Fed is doing will Alvedraa further action to stimulate growth in the United StatesAnd enhanced feelings after the vice president defended the Federal Reserve Bank (Janet Yellen) the idea of further stimulus measures to support the fragile economy with the U.S. exacerbated the problems in the euro area. And repeat the head of the Federal Reserve Branch (Atlanta) 9 Dennis Lockhart talk Yalin, said that the level of concern has risen since the last meeting Alnbug in the month of April to April.
Meanwhile, markets were also awaiting the results of the Spanish bond auction 10 years later in the day, after the Treasury Minister Cristobal Montouro that the markets were closed already in Spain due to higher borrowing costs in the country.Remained sentiment weak extended the European Central Bank policy of non-performing loans are limited to a period of three months as even mid-January 2013 in the monetary policy meeting on Wednesday, but did not announce any of new lending for three years, which disappointed investors, the failure of the Bank’s implementation of new mitigation measures to help stabilize markets..
Attention is now shifting to the testimony in Congress by the Federal Reserve Ben Bernanke, Chairman of the Board later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Federal Reserve study further monetary stimulus.The Federal Reserve, 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.