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Wednesday, August 15, 2012

Gold futures prices 8/15/2012

Gold futures prices 8/15/2012 : Gold rebounded on Wednesday after its two previous sessions' losses, as muted U.S. consumer inflation raised hopes for monetary stimulus and a prominent hedge fund manager's rising appetite on gold brightened bullion
market sentiment.

Investors took heart on news that long-time gold bull John Paulson raised his stake in the world's No. 1 gold exchange-traded fund SPDR Gold Trust by the second quarter, a sign that the well-known money manager has not lost faith in the precious metal as a long-term currency and inflation hedge.

Bullion benefited as market hopes for Federal Reserve monetary easing increased after data showed U.S. consumer prices were flat in July and the year-over-year increase was the smallest in more than 1-1/2 years. In addition, a gauge of manufacturing in New York state contracted this month.

Gold has failed to break above or below a trading range between $1,525 and $1,680 an ounce in the past four months as disappointment over a lack of more aggressive stimulus by the Fed and other central banks dampened buying. Lackluster global economic indicators, however, put a floor on the metal.

"Nobody is buying or selling gold because of what happened to our economy. It's all currency-generated movements" in the middle of very quiet summer trade, said Anthony Neglia, president of Tower Trading and a COMEX gold options floor trader.

Spot gold was up 0.3 percent at $1,603 an ounce by 12:20 p.m. (1620 GMT).
U.S. COMEX December futures were up $3 at $1,605.40 an ounce, with trading volume on track to finish below its 30-day average, preliminary Reuters data showed.

PAULSON UPS GOLD STAKE
Hedge fund manager John Paulson raised his stake in the SPDR Gold Trust in the second quarter, which marked his first increase since the first quarter of 2009, U.S. regulatory filing showed late Tuesday. The move boosted confidence that bullion prices have more room to rise this year despite lackluster performance in the first half of the year.

"The fact that you have one guy who made the most money in his gold fund is increasing his holding, you have to feel confident about that if you are a gold bull," said Mihir Dange, COMEX gold options floor trader for Arbitrage LLC.

Billionaire financier George Soros more than doubled his shares in the ETF, while Eton Park Capital's Eric Mindich had dissolved his stake by the end of the second quarter.

Among other precious metals, spot platinum was up 0.1 percent at $1,391.49 an ounce, while spot palladium edged up 0.4 percent at $575.47 an ounce. Silver was up 0.2 percent at $27.81 an ounce.

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