Wednesday, September 19, 2012

Gold Prices for september 20 2012

Gold Prices for september 20 2012 : Gold futures traded higher in U.S. afternoon trade Wendesday, after the Bank of Japan eased monetary policy further, making it the latest major central bank to announce action to shore up slowing global economic growth.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,771.45 a troy ounce during U.S. afternoon trade, easing up 0.17%.

Earlier in the session prices rose by as much as 0.60% to trade at a session high of USD1,779.25, the strongest level since February 29, when prices touched USD1792.15 a troy ounce.

Gold prices were likely to find support at USD1,751.95 a troy ounce, the low from September 18 and near-term resistance at USD1,792.25, the high from February 29.

Gold futures rallied to the highest level since late-February during the Asian trading session, following the Bank of Japan’s surprise decision to boost the size of its asset-purchase program by JPY10 trillion to a total of JPY80 trillion, in an effort to stimulate slowing economic activity and to counter the strengthening yen.

The BoJ move follows the Federal Reserve's QE3 stimulus program announced last week and the European Central Bank earlier this month adopting a bond-buying scheme to lower borrowing costs in troubled euro zone countries seeking aid.

The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation.

But prices came under pressure as the U.S. dollar strengthened after reports surfaced that some German lawmakers are seeking to water down proposals for a European banking union and supervision of euro zone banks by the European Central Bank.

Dow Jones Newswires reported that the German government not only wants a strict separation of bank supervision and monetary policy in Europe, but also favors a separate bank-supervision body that would give large countries more votes.

Investors also remained jittery amid reports Spanish Prime Minister Mariano Rajoy is uncertain about asking for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.

Elsewhere on the Comex, silver for December delivery shed 0.3% to trade at USD34.60 a troy ounce, while copper for December delivery rose 0.55% to trade at USD3.808 a pound.

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