Tuesday, July 17, 2012

Gold prices prediction july 18 2012

Gold prices prediction july 18 2012 : Gold prices were off in early Asian trading on Wednesday after U.S. Federal Reserve Chairman Ben Bernanke appeared before the Senate Banking Committee earlier and offered no hints of fresh stimulus measures.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.35% and trading at USD1,583.95 a troy ounce, up from a session low of USD1,571.15 and down from a high of USD1,598.75 a troy ounce early during the session.

Gold futures were likely to test support at USD1,571.15 a troy ounce, the earlier low, and resistance at USD1,594.55, the high from July 16.

Despite weak monthly jobs reports, disappointing consumer sentiment figures and poor retails sales numbers, the Federal Reserve apparently remains willing to stimulate the economy via easing measures but only if conditions deteriorate further.

"Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to the economic outlook, the Committee made clear at its June meeting that it is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," Bernanke told lawmakers earlier, according to a copy of his speech.

Markets interpreted Bernanke's comments to mean the Fed will stick with its wait-and-see approach and intervene if the labor market deteriorates and prices threaten to deflate.

Gold fell and the dollar rose, as easing measures tend to weaken the greenback to spur the economy.

Gold and the U.S. dollar often trade inversely from one another.

The U.S. consumer price index, meanwhile, was unchanged in June from May, and rose just 0.2 percent when stripped of volatile food and energy prices, the Commerce Department reported earlier Tuesday.

Elsewhere on the Comex, silver for September delivery was down 0.10% and trading at USD27.288 a troy ounce, while copper for September delivery was up 0.12% and trading at USD3.468 a pound.

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