Gold futures prices for august 9 2012

Gold futures prices for august 9 2012 : Gold futures were little changed on Wednesday, as risk appetite faded following disappointing German economic data, while prospects for sluggish physical demand also weighed on the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,610.95 a troy ounce ahead of the U.S. open, easing up 0.02%.

Gold futures were likely to test support at USD1,601.80 a troy ounce, Monday’s low and resistance at USD1,618.33, Tuesday’s high.

Market sentiment waned as weak economic data out of Germany indicated that the effects of the long running euro zone debt crisis are continuing to take a toll on the region’s largest economy.

German industrial production fell 0.9% in June, more than forecasts for a decline 0.8%, following an upwardly revised 1.7% gain in May.

Elsewhere, ratings agency Standard and Poor’s revised the outlook for Greece to negative from stable overnight and warned that Athens was likely to miss the financial targets set by its international lenders, which would increase the likelihood of a default.

Gold remained supported by expectations that the European Central Bank will soon take steps to help lower Spanish and Italian borrowing costs after the bank indicated last week that it may restart its bond buying program.

In the U.S, Tuesday’s comments by Boston Federal Reserve President Eric Rosengren kept alive speculation over the possibility for more easing by the U.S. central bank.

Rosengren said the Fed should launch another round of quantitative easing of whatever size and duration was necessary to get the economy back on its feet.

The comments came after data last week showing that the U.S. unemployment rate unexpectedly ticked up to 8.3% in July, from 8.2% the previous month.

Meanwhile, physical demand from India, the world’s largest gold consumer, looked likely to remain sluggish ahead of the festival season which begins this month and runs through until November, as a result of a disappointing rainy season and weakness in the rupee, which pushes up domestic gold prices.

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