On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.02% and trading at USD1,670.25 a troy ounce, up from a session low of USD1,662.95 and down from a high of USD1,672.75 a troy ounce early during the session.
The Fed released the minutes of its July 31 monetary policy meeting earlier this week in which voting members voiced support for monetary accommodation if the economy doesn't pick up the pace of its recovery.
Stimulus measures such as quantitative easing, under which the Fed buys bonds from banks to inject liquidity into the financial system and lower interest rates, weaken the dollar and send gold rising as a side effect.
However, since that meeting, surprisingly sound economic indicators have hit the wire, prompting investors to view that the Fed may hold off after all, including firmer retail sales, consumer sentiment and industrial production figures.
The Census Bureau reported earlier that durable goods orders rose to 4.2% in July from 1.6% in June, whose figure was revised up from 1.3%.
Indications point toward various monetary easing programs in worldwide nations.
China released economic data on Thursday indicating manufacturing has fallen to its weakest rate since November of last year. That is among the most recent data indicating the nation is in need of a boost to reverse six quarters of slackening development.
The sovereign debt crisis continues ravaging in the euro zone, and many believe the European Central Bank is on the precipice of intervening for the sake of Italy and Spain, two key nations that are struggling to stave off the peril that the debt scourge presents. The U.S. Federal Reserve is set to convene its yearly symposium next week, for which speculation is mounting about an announcement.
Kitco News Gold Survey next week 27-31 august 2012
In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, 13 see prices up, while five see prices down, and six are neutral or see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Those who see higher prices said momentum could push values up, with a trip to $1,700 possible. Also, gold might try to hold its firmer tone ahead of the Federal Reserve confab next week in Jackson Hole, Wyo., as gold bulls hope Fed Chairman Ben Bernanke will tip his hand to show if there is any timeframe for possible stimulus. After this week’s Federal Open Market Committee meeting minutes for August were released, gold price rallied on thoughts the Fed was inching closer to action.
Those who see weaker prices said they expect some sort of retracement after this week’s gains, especially if there are no soothing words from Bernanke.
Bloomberg expect gold prices next week 27-31 august 2012
Twenty-nine of 35 analysts surveyed by Bloomberg expect prices to rise next week and three were bearish. A further three were neutral, making the proportion of bulls the highest since Nov. 11. Investors bought 51.7 metric tons valued at $2.78 billion through gold-backed exchange-traded products this month, the most since November, overtaking France as the world’s fourth-largest hoard when compared with national reserves.
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