Gold Price Continues to Strong Near the Highest Level
Gold prices continued to strengthen near a one-week high on Wednesday (10/7), after China's exports in June unexpectedly declined. In addition, market participants are still waiting for minutes of the Federal Open Market Committee (FOMC) meeting last month, on signs the Fed's intentions began to ease stimulus.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,255.30 a troy ounce, up 0.8% on the day.
Comex gold prices rose as much as 0.6% early in the session to reach daily highs of USD1,253.75 per troy ounce.
Federal Reserve Chairman Ben S. Bernanke said in June the central bank may slow its bond purchases by $ 85 billion a month, if the US economy continues to improve. China's exports fell 3.1 percent from a year earlier, the General Administration of Customs said today, compared with the median estimate of a 3.7 percent gain in a Bloomberg survey.
Analyst of BKDI development division, Ibrahim Say that the price of gold is currently consolidating for a while, because previously this yellow metal commodity market had plummeted due to the strengthening US dollar.
In addition, the market is waiting for some important moments in the coming Thursday, as the results of the meeting of the Federal Open Market Committee (FOMC) and the Fed statement about the planned tightening of US monetary stimulus, as the improvement of US economic data continues to improve, Ibrahim Say.
Investors will examine the minutes of the June 18-19 Fed meeting for further clues on the direction of US monetary policy.
In addition, Fed Chairman Ben Bernanke is scheduled to speak at a National Bureau of Economic Research in Boston on Wednesday.
Gold prices slumped 26 percent this year, the worst annual decline since 1981, as some investors lost confidence in the yellow metal as a hedge.
Official trade data showed that China's exports fell 3.1% from a year earlier in June, beating expectations for a 4.0% increase.
he report also showed that imports fell 0.7%, bringing the country's trade surplus to USD27.1 billion in the month, broadly in line with expectations of a surplus of USD27 billion. Source: BKDI/Ib