(Reuters) – On Thursday, gold gained some lost ground from the selling pressure since the beginning of the week. The Fed’s comments drove the USD lower outside the gold market, spouting doubts about the timing of tapering the bond-purchasing program.
Gold price started a correction movement from the selling pressure since Monday, supported by the USD weakening and short-covering. However, recovering from the two-day slump was sluggish due the uncertainty about the Fed’s timing of slowing their $85 billion monthly bond purchasing pace.
The U.S. dollar index hit a six-week low with the bears having an upper hand on the short term chart. The U.S. equity market and U.S. treasury bond yields were also down for the day. NYMEX Crude Oil was also slightly down this morning. These factors are bullish for gold, and precious metals in general.
The Chinese economic data released recently was bullish for the commodity markets. Alternatively, the European Central Bank forecasted a contraction in the economic growth of the Euro zone by 0.6% this year.
Spot gold gained $22.96 so far, to reach $1,306.33 at 1420 GMT, the highest for the day. Comex gold futures for September delivery were lasted quoted up by $22.80 to reach $1,306.70 at 1420 GMT.
The London Gold A.M. Fix was at $1,287.75 while the London P.M. Fix at $1,298.25.