Tuesday, August 21, 2012

Gold futures prices august 22 2012

Gold futures prices august 22 2012, spot gold 8/22/2012 : Gold prices dropped in Asian trading on Wednesday after investors sold the metal for profits to await the release of the minutes from the Federal Reserve's latest monetary policy meeting.

The metal soared earlier to 3-month highs earlier on renewed hopes the European Central Bank will roll out a bond-buying program to ease the debt crisis.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.10% and trading at USD1,639.05 a troy ounce, up from a session low of USD1,636.35 and down from a high of USD1,639.35 a troy ounce early during the session.

Gold futures were likely to test support at USD1,610.25 a troy ounce, the low from Aug. 20, and resistance at USD1,641.45, the high from Aug. 21.

Investors sold and jumped to the sidelines ahead of Wednesday's release of the minutes from the Federal Reserve’s August policy meeting.

A string of solid economic indicators in the U.S. has lowered expectations for the U.S. central bank to roll out a new round of stimulus measures, which would otherwise send gold rising.

Consumer sentiment figures have surprised on the upside as have retail sales numbers, industrial production figures and other indicators, and a hints of less need for Fed intervention would send the dollar rising and gold dipping.

The decision to sell for profits came after the precious metal soared in European and U.S. sessions on rekindling hopes the European Central Bank will buy debt from financially distressed countries to lower borrowing costs there and ease the crisis.

Der Spiegel reported over the weekend that the European Central Bank may decide to cap yields in eurozone sovereign debt markets at its September policy meeting.

The ECB would carry out such a policy via buying sovereign bonds in the open market, though bank officials branded the news report as misleading, which sent the euro falling earlier this week.

However, The Daily Telegraph later wrote that the report was true, which sent the dollar falling and the euro shooting up as high as 1% in U.S. trading earlier.

Gold often tracks the euro when the single currency gains against the dollar, gold's traditional hedge.

Trade data out of Japan allowed for choppy trading, however.

Japan reported that exports dropped 8.1% in July, though imports rose 2.1%, fueling fears that overseas demand for Japanese products and services could be waning.

Elsewhere on the Comex, silver for September delivery was down 0.47% and trading at USD28.290 a troy ounce, while copper for September delivery was up 0.04% and trading at USD3.441 a pound.

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