Ahead of the Federal Reserve Chairman Ben Bernanke’s testimony before Congress later in the day, gold futures made a slight increase in the early Europe session today as the USD got weaker and the equities fallen.
June gold futures delivery rose by $7.50 (0.5%) to reach $1,385.10 an ounce, a level that was nearer to the top of the day’s trading range. The contract had earlier fell as low as $1,370.60 an ounce.
On the Comex division of the New York Mercantile Exchange, gold shed $6.50 in Tuesday’s regular session.
Growth on Wednesday approached as investors expecting Bernanke’s outlook on the U.S. economy and employment trends for signs on whether the Fed may bring down the pace of its asset purchases.
The Fed’s quantitative easing has in the wake of the global financial crisis been a key source of USD weakness, which, sequentially, tends to support gold prices.
Gold prices decreased by more than 17% so far in 2013, whereas the ICE dollar index (which measures the USD against a basket of six main global currencies) has increased by 5% during the same period.
Compared with ICE dollar index was at 83.877 in North America late on Tuesday, on Wednesday, the ICE dollar index is at 83.742.