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Wednesday, July 18, 2012

gold prices prediction july 19 2012

gold prices prediction july 19 2012 : Gold prices were up in early Asian trading on Thursday on demand from bargain hunters, who brushed off strong housing data out of the U.S., which was bullish for gold's traditional hedge, the dollar.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.13% and trading at USD1,572.85 a troy ounce, up from a session low of USD1,572.55 and down from a high of USD1,573.35 a troy ounce early during the session.

Gold futures were likely to test support at USD1,567.35 a troy ounce, the low from July 18, and resistance at USD1,583.65, the high from July 18.

Solid housing data in the U.S. and a wait-and-see attitude from Federal Reserve Chairman Ben Bernanke weakened gold earlier, wiping out market expectations the Fed would roll out a fresh round of quantitative easing that would weaken the dollar via liquidity injections to spur recovery.

Gold and the dollar often trade inversely from one another. Housing starts jumped 6.9% in June to a seasonally-adjusted annual rate of 760,000 units, a near four-year high and well above expectations for a gain of 5.2% to 745,000 units.

Housing starts for May were revised up to 711,000 units from a previously reported 708,000 units.

Building permits issued in June dropped 3.7% to a seasonally adjusted 755,000, worse than expectations for a decline of 2.4% to 765,000.

Building permits issued in May totaled 784,000.

Housing threw the U.S. economy into the worst downturn since the Great Depression and continues to weigh on its recovery.

Meanwhile, Fed Chairman Ben Bernanke spent a second day testifying in front of Congress, offering little to suggest the economy was closer to needing a jolt of stimulus.

The Fed Beige Book, a group of economic summaries, predicted modest recovery as well.

Monetary easing measures send gold rising, and disappointed investors sold gold earlier before investors saw ample room to snap up gold positions amid bargain-hunting.

Solid earnings in the U.S. tech sector prompted some investors to sell their dollars in search of risk, which bolstered gold as well.

Elsewhere on the Comex, silver for September delivery was up 0.11% and trading at USD27.125 a troy ounce, while copper for September delivery was up 0.09% and trading at USD3.474 a pound.

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