Forexpros – Gold prices rose in early Asian trading on Thursday, erasing several sessions of declines on reports several Federal Reserve policymakers were willing to stimulate the U.S. 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 0.66% at USD1,546.75 a troy ounce.
Gold traded at a low of USD1,537.55 a troy ounce and hit a high of USD1,546.75 a troy ounce during the session.
Gold futures were likely to test support at USD1,526.95 a troy ounce, the low on May 16, and resistance at USD1,603.35, the high from May 9.
Fears that Greece will exit the eurozone have fueled demand for gold’s traditional hedge, the dollar, in recent days, which has sent the metal falling.
The Fed’s language from the minutes of its latest monetary policy meeting, however, halted gold’s slide.
“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.
Greek political turmoil failed to prevent gold from posting solid gains.
The country appears set to hold new elections on June 17 to end an impasse among the nation’s political parties.
Fears the country may be headed out of the eurozone pressured the euro down and sent the greenback rising in recent days, a sentiment that carried over into Asian trading as well on Thursday.
Greeks have reportedly yanked as much as EUR700 million from the nation’s banks since the outcome of the May 6 elections, which precipitated the current political impasse.
Elsewhere on the Comex, silver for July delivery was up 0.85% and trading at USD27.428 a troy ounce, while copper for July delivery was up 0.79% and trading at USD3.494 a pound.
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