Spot gold climbed 1.8% to settle at $1,685.89. This was metal’s biggest one-day leap in last two months. It climbed to a session high of $1,691.80 an ounce, the highest since March 27. U.S. gold futures for December delivery added $30.50 an ounce to end the day at $1,687.60. According to Reuters, trading volume was well above its 30 day moving average.
So far this year, the metal is up 8% after having rallied 15% in January when the Fed hinted at another round of quantitative easing (QE3) and pledged to keep the benchmark interest rates at record low levels at least until 2014. But gradually the metal started to retreat as absence of no economic stimulating measures or hints from the central bank kept investors directionless, prompting to lower their bullish bets.
Nonetheless, some analysts believe that Fed might not offer any easing for the time being when it meets for its next FOMC on September 12 and 13. With U.S. consumer spending jumping 0.4 % in July which was biggest rise in past five months and Fed’s Beige Book showing U.S. economy growing in July and August, fed might wait until the outcome of the next presidential elections.
What is your prediction of Gold price in September 2012 ?
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