Gold In Tight Ranges Ahead Of Wyoming's Gathering
Due to the cautiousness that prevails ahead of the two days annual symposium in Jackson Hole, Wyoming, that starts today, during which the central bank's chairman Ben Bernanke is schedule to speak, metals are moving in tight ranges.
Sentiment is now mixed, as some traders believe Bernanke might hint at a possible third round of quantitative easing, while others say that the Feds will wait for next week`s nonfarm payroll report before taking such a decision.
Gold is trading as of this writing around the $1657.40 per ounce after rising from the lowest of $1652.63 and the opening at $1655.26, yet it lacks momentum, which may keep it in a tight range till Bernanke's speech.
“It`s not surprising for the metal to have a bit retracement and consolidation here given the size of the rally and the unlikelihood of further stimulus at Jackson Hole”, said director of metals trading at Vision Financial Markets, David Meger.
The Fed's symposium will gather central bankers and finance ministers from around the world, which will drag much attention today; yet investors will be closely watching Canada's GDP, Germany's retail sales and the US's consumer confidence data.
Meanwhile the dollar index is also trading as of this writing in a tight range around the 81.65 from the opening at 81.71, while silver is trading around the $30.39 per ounce after from the opening at $30.37.
If the Feds will refrain from adding more stimulus, which is seen as more probable following the latest improvement seen in consumer spending, gold, along with other metals, might witness a correction.
The Feds previous rounds of asset purchases weakened the dollar as appetite for risk improved, while global stock markets were boosted, and demand on gold increased, pushing its prices higher, since inflation is seen rising when growth advances.
