Analysis | Commodity Market Commentaries
Gold Rises As The Central Bankers' Gathering Nears
Gold advanced on Wednesday, recovering some of this week's early loses, as the Fed's annual symposium in Jackson Hole, Wyoming, which gathers central bankers and finance ministers from around the world, nears.
Gold is trading as of this writing around the $1667.75 per ounce after rising from the lowest of $1664.25 per ounce while the resistance found around the $1670.00 levels may keep the precious metal today below it and trying to break it.
Investors hope that Bernanke might hint later this week to a third round of quantitative easing that would spur growth, adding to the upside pressures on gold considered a hedge against inflation as a result of growth improvement and extensive cash-printing.
The Feds previous rounds of asset purchases weakened the dollar as appetite for risk improved, while global stock markets were boosted, and the gold`s appeal rose since inflation is seen rising when growth advances.
Although caution may persist till Friday, markets will be closely watching the U.S.'s growth date later today, where the second-quarter gross domestic product may show that the U.S. economy grew faster than initially estimated.
Other economic data worth following on Wednesday include Germany's consumer prices for August, Italy's retail sales, Switzerland's leading indicator, and the U.S. pending home sales and Beige Book survey.
The dollar index is trading as of this writing around the 81.45 from the opening at 81.35, while silver is trading around the $30.90 per ounce after rising from the lowest $30.71 to the highest $30.94.
Platinum fell today to the lowest $1512.00 from the highest $1533.00 and as of this writing is trading around the $1516.00 levels, meanwhile palladium fell to the lowest $633.0 from the highest $651.00 and now is trading around the $638.00 level.
