Sunday, September 9, 2012

gold prices for september 10 2012

gold prices for september 10 2012 : Gold prices fell in Asian trading on Monday after investors sold the nicely priced asset for profits. The precious metal soared on Friday after the U.S. government released a very weak August jobs report that fueled already growing sentiment the Federal Reserve is planning to stimulate the U.S. economy, possibly this week.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.22% and trading at USD1,734.25 a troy ounce, up from a session low of USD1,733.55 and down from a high of USD1,736.35 a troy ounce early during the session.

Gold futures were likely to test support at USD1,688.85 a troy ounce, Friday's low, and resistance at USD1,741.95, Friday's high.

The Bureau of Labor Statistics reported 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 Sept. 12-13 monetary policy meeting.

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.

The Bureau of Labor Statistics added that July's figures were revised down to 141,000 from 163,000, while June's figures were revised down to 45,000 from 64,000, further stoking market calls for Fed intervention.

The unemployment rate stood at 8.1% in August, down from 8.3% in July as more jobless worked exited the labor force.

Gold soared on Friday on the news even after posting hefty gains in recent sessions beforehand, which brought in the profit takers on Monday.

Elsewhere on the Comex, silver for December delivery was down 0.09% and trading at USD33.660 a troy ounce, while copper for December delivery was up 0.01% and trading at USD3.646 a pound.

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