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Thursday, April 26, 2012

Spot gold prices april 26 2012

Spot gold prices april 26 2012, U.S. gold futures : Gold prices rose towards $1,650 an ounce on Thursday after the Federal Reserve opted to keep U.S. interest rates at rock bottom, taking further support from the foreign exchange market as the dollar languished against a basket of major currencies.

Spot gold was up 0.3 percent at $1,649.10 an ounce at 1129 GMT, while U.S. gold futures for June delivery were up $7.30 an ounce at $1,649.60.

In a statement after a two-day meeting to Wednesday, the Fed's policy-setting panel reiterated its expectation that interest rates would not rise until at least late 2014, and took no action on monetary policy.

Gold bulls, who had been hoping for fresh hints of quantitative easing from the Fed, were disappointed, and prices fell below $1,625 straight after the statement. Dollar weakness and price-sensitive buying quickly reversed that, however.

The message out of the Fed didn't really change much," Credit Suisse analyst Tom Kendall said. "We had a little sell off immediately after the statement came out, but it quickly recovered.

"I think it would have taken a much greater change in stance coming out of the Fed for gold to really make a big break one way or the other, and given the disappointing U.S. data coming out over the last couple of weeks, I don't think that was particularly likely."

Weakness in the dollar, which makes commodities priced in the unit cheaper for other currency holders, also supported gold, although the U.S. unit steadied against a currency basket as the euro surrendered early gains.

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