Tuesday, June 5, 2012

Gold prices Prediction June 6 2012

Gold prices Prediction June 6 2012 ; Gold prices rose in Asian trading Wednesday ahead of upcoming European Central Bank and Federal Reserve monetary policy meetings that could see policymakers approving stimulus measures to jolt the global economy.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.52% at USD1,625.35 a troy ounce.

Gold hit at a low of USD1,616.75 a troy ounce and a high of USD1,625.85 a troy ounce during the session.

Gold futures were likely to test support at USD1,613.85 a troy ounce, the low of June 5, and resistance at USD1,629.55, the high from June 4.

The European Central Bank is due to address monetary policy this week while the Federal Reserve will meeting later this month to do likewise.

A spate of dismal U.S. jobs reports and other disappointing indicators in the U.S. is fueling talk that the U.S. central bank will consider stimulating the world's largest economy via quantitative easing measures, which are asset purchases from banks that inject liquidity into the economy.

As a side effect, the dollar weakens and gold rises.

The European Central Bank may consider similar accommodative policy tools considering that the debt crisis is worsening.

Greece will hold parliamentary elections on June 17 and a strong showing from the Syriza political party could result in a coalition government in favor of ditching austerity measures tied to bailout funding, which could pave the way for a Greek exit from the eurozone.

Spain has been experiencing increasing financial strain as it prepares to prop up its financial sector, and Treasury Minister Cristobal Montoro earlier voiced fears that high borrowing costs could soon close off market access for Spain.

The country plans to raise EUR2 billion in long-term bonds on Thursday, which has markets on edge considering that recent debt auctions have seen yields hover well above 6 percent.

An earlier emergency conference call among policymakers from the world's seven top industrialized nations to discuss ways to battle the European debt crisis failed to produce any major breakthroughs, which kept gold firm.

Healthy U.S. service-sector data bolstered the dollar, meanwhile, though not enough to offset gold's rise.

The Institute of Supply Management reported that its non-manufacturing purchasing managers' index rose to 53.7 last month from 53.5 in April.

Elsewhere on the Comex, silver for July delivery was up 0.64% and trading at USD28.587 a troy ounce, while copper for July delivery was up 0.43% and trading at USD3.315 a pound.

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