The precious metal soared on Friday after the U.S. government released a very poor August jobs report that fueled already building sentiments the Fed is planning to stimulate the U.S. economy, this week
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.12% and trading at USD1,727.15 a troy ounce, up from a session low of USD1,726.75 and down from a high of USD1,728.25 a troy ounce early during the session.
Gold futures were likely to test support at USD1,724.55 a troy ounce, Monday's low, and resistance at USD1,740.75, Monday's high.
The U.S. Bureau of Labor Statistics reported on Friday that the U.S. economy created a net 96,000 nonfarm payrolls in August, well below market calls for 125,000 jobs.
The jobs report fueled already growing sentiment that the Federal Reserve will roll out a third round of quantitative easing at its two-day monetary policy meeting that opens Wednesday.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Such accommodative policies tend to weaken the dollar by design, which sends the greenback's traditional hedge, gold, rising.
Gold soared on Friday on the U.S. unemployment data, which brought in the profit takers Monday and Tuesday.
Should the Fed announce easing measures later this week as many think, the price could soar though investors sold in the meantime to await official word from the U.S. central bank.
Elsewhere on the Comex, silver for December delivery was down 0.47% and trading at USD33.475 a troy ounce, while copper for December delivery was up 0.15% and trading at USD3.676 a pound.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment