Forexpros – Gold prices rose in Asian trading Tuesday on residual talk that last Friday’s dreary May jobs report will prompt the Federal Reserve to consider stimulating the economy via monetary easing measures.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.55% at USD1,622.85 a troy ounce.
Gold hit at a low of USD1,618.85 a troy ounce and a high of USD1,623.15 a troy ounce during the session.
Gold futures were likely to test support at USD1,610.25 a troy ounce, the low of June 4, and resistance at USD1,629.55, the high from June 4.
The U.S. economy added a net 69,000 nonfarm payrolls in May, much lower than expectations for gain of about 150,000.
The headline unemployment rate, meanwhile, rose to 8.2% in May from 8.1% in April, which continued to influence trading strategies in Asia on Tuesday, as investors priced in the possibility that Federal Reserve will stimulate the economy via monetary easing measures to ensure greater price stability and hiring.
Federal Reserve Chairman Ben Bernanke will testify before Congress on Thursday and address the health of the U.S. economy.
Meanwhile, the European Central Bank and the Bank of England will hold monetary policymeetings later this week, and signs of easing in their respective economies could send gold rising as well.
Elsewhere on the Comex, silver for July delivery was up 1.36% and trading at USD28.388 a troy ounce, while copper for July delivery was down 0.35% and trading at USD3.319 a pound.
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