Forexpros – Gold prices rose in U.S. trading on Friday, still buoyed on recent reports the U.S. Federal Reserve won’t rule out stimulating the economy via monetary easing measures should recovery wane.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded up 0.83% at USD1,588.05 a troy ounce.
Gold traded at a low of USD1,567.85 a troy ounce and hit a high of USD1,597.35 a troy ounce during the session.
Gold futures were likely to test support at USD1,542.85 a troy ounce, the low on May 17, and resistance at USD1,639.05, the high from May 8.
Earlier this week, the U.S. Federal Reserve released the minutes of its latest monetary policy meeting, in which members suggested they’d favor stimulating the economy should recovery wane from its sluggish albeit sustained course.
“Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough,” the Federal Reserve minutes read.
Stimulus measures tend to weaken the dollar, and talk that monetary policy authorities are even considering them sends gold rising.
The euro, meanwhile, regained some strength Friday after taking a beating on fears that Greece is moving closer to exiting the eurozone.
Political parties in Athens have been unable to agree on a coalition government, which forced new elections scheduled for June.
Market talk says political parties opposed to sticking with austerity measures will fare well in the upcoming elections, and rejecting austerity could crimp the flow of bailout money into the country and send Greece defaulting and exiting the currency zone.
However, the euro rebounded Friday, as the world works to keep Greece with the euro for now, which sent the dollar falling.
Gold and the dollar tend to trade inversely with one another.
Elsewhere on the Comex, silver for July delivery was up 2.02% and trading at USD28.585 a troy ounce, while copper for July delivery was down 0.24% and trading at USD3.471 a pound.
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