Gold Headed for Third Straight Monthly Gain, Bernanke Speech “Unlikely to Give Clear Policy Signal”
By: Ben Traynor
GoldSeek.com
Friday, 31 August 2012
London Gold Market Report
WHOLESALE prices to buy gold bullion hovered close to $1660 an ounce Friday morning in London, around ten Dollars below where they started the week, while stock markets gained and US Treasuries sold off, ahead of today’s much-anticipated speech by Federal Reserve chairman Ben Bernanke and Monday’s Labor Day holiday in the US.
Silver bullion rose to $30.67 per ounce, slightly below last week’s close, while other commodities were also broadly flat.
Based on London gold fix prices, Dollar gold bullion prices looked set for a third straight monthly gain by Friday lunchtime in London, trading around 2.3% higher than the final July fix price.
The gold price in Sterling looked set for a 1% monthly gain. Gold in Euros by contrast was trading slightly below where it ended last month, dropping to €42,358 per kilo (€1317 per ounce) during Friday morning’s trading.
“For now, we have a bit of a cautious approach to the gold market,” says Credit Suisse analyst Tobias Merath.
“Expectations for more [Fed] monetary easing would have to be fulfilled to break higher here.”
Bernanke is due to speak later today at the annual Jackson Hole conference of central bankers.
“We believe that Bernanke will avoid sending a clear signal about Fed intentions for the September meeting,” says a note from Barclays, referring to next month’s Federal Open Market Committee meeting.
“The market’s disappointment could have a modest negative effect on risk appetite in coming days.”
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