Wednesday, August 22, 2012

Gold futures prices for august 23 2012

Gold futures prices for august 23 2012, gold price 8/23/2012 : Gold prices soared to highs not seen since May in Asian trading on Thursday after the Federal Reserve released the minutes of its latest monetary policy meeting, revealing stimulus measures were very possible in the near future.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 1.13% and trading at USD1,656.85 a troy ounce, up from a session low of USD1,653.75 and down from a high of USD1,657.45 a troy ounce early during the session.

Gold futures were likely to test support at USD1,634.55 a troy ounce, the low from Aug. 22, and resistance at USD1,672.15, the high from May. 1.

The Federal Reserve will likely stimulate the U.S. economy with monetary easing tools if it doesn't pick up the pace of its tepid recovery soon, the U.S. central bank revealed in the minutes of its recent monetary policy meeting.

"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.

"Several members noted the benefits of accumulating further information that could help clarify the contours of the outlook for economic activity and inflation as well as the need for further policy action."

The comments sparked a rally for gold on the notion that the Federal Reserve will announce plans to roll out a new round of quantitative easing soon.

Quantitative easing, under which the Fed buys bonds such as Treasury holdings and mortgage-backed securities from banks, weakens the dollar and sends the greenback's traditional hedge, gold, soaring.

The Fed has rolled out two rounds of quantitative easing since the financial crisis hit in 2008, injecting $2.3 trillion into the economy by acquiring assets held by banks.

Meanwhile, existing home sales came in weaker than expected, spurring more talk of Federal Reserve intervention.

Sales of previously owned homes rose 2.3 percent in July to 4.47 million units, the National Association of Realtors reported earlier.

Analysts were expecting the number to hit 4.52 million units, however.

Housing, a primary factor that sent the U.S. economy tumbling into the worst decline since the Great Depression, continues to show signs of bumping along a bottom and refuses to display marked improvement.

Elsewhere on the Comex, silver for September delivery was up 1.09% and trading at USD29.877 a troy ounce, while copper for September delivery was up 0.25% and trading at USD3.482 a pound.

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