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Wednesday, June 6, 2012

Gold prices prediction june 7 2012

Gold prices prediction june 7 2012 : Gold inched up on Thursday and hovered near one-month highs, with investors hoping the U.S. central bank will take action to stimulate the world's biggest economy and shield it from the fallout of the euro zone debt crisis.

Spot gold gained 0.2 percent to $1,620.16 an ounce by 0302 GMT, not too far off the one-month high of $1,640.50 reached in the previous session. U.S. gold futures contract for August delivery lost 0.8 percent to $1,621.80.

U.S. Federal Reserve Chairman Ben Bernanke will testify before Congress on Thursday, a day after two influential officials in the central bank said they were prepared to take even more policy action to boost the erratic economic recovery.

Analysts will be listening to Bernanke closely for any hints that more bond buys are in store, especially after the lack of immediate aid for the troubled euro zone from the European Central Bank, which put the onus firmly on European policymakers to resolve the debt crisis. Expectations that the ECB would take action had helped bullion rise on Wednesday.

People have become more bullish after last Friday's employment figures. The market may be entering a new phase on the expectation that there will probably be some sort of easing, Gold has held around $1,620 level since surging more than 4 percent last Friday after disappointing U.S. employment data shook investors' confidence in the economic recovery and fuelled hopes for more easing.

The euro traded little changed against the dollar, after jumping sharply in the previous session after the ECB left rates and economic outlook unchanged.

Supporting the euro and risk appetite in general, Germany and European Union officials are urgently exploring ways to rescue Spain's debt-stricken banks although Madrid has not yet requested assistance and is resisting being placed under international supervision.

Investors will eye the Greek elections on June 17 and a Group of 20 meeting on June 18-19 to gauge whether there is political will in Greece to stay within the euro zone and what actions will be undertaken to fight the bloc's debt crisis.

Spot silver lost half a percent to $29.23, after jumping more than 3 percent and hit a one-month high of $29.88 in the previous session.
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