Any further steps to help economy to be discussed at FOMC meeting
By Claudia Assis and Chris Oliver, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rose Friday as Federal Reserve Chairman Ben Bernanke put off any discussion of economic easing measures until a policy meeting in late September while offering a more optimistic view of the U.S. economy.
Gold for December delivery GC1Z +1.66% gained $22.40, or 1.2%, to $1,785 an ounce on the Comex division of the New York Mercantile Exchange.
So far this week, gold has declined 3.7%. The week included a two-day correction that at its peak shaved nearly $200 off the price of an ounce of gold, which hit a record a few bucks shy of the $1,900 mark on Monday.
Earlier Friday, gold traded as high as $1,800 an ounce on expectations Bernanke would hint at further economic stimulus, which would reignite fears of currency debasement and government profligacy at the heart of arguments for ever-rising gold prices.
In his much-anticipated speech before a gathering of central bankers in Jackson Hole, Wyo., Bernanke said discussion about easing options available to the central bank will be held at the next Federal Open Market Committee meeting late next month.
Bernanke announced the Fed had decided to expand its September meeting to two days, Sept. 20 and 21, to weigh the pros and cons of further easing.
The gold markets showed they were “a little disappointed” from the lack of stimulus, but the magnitude of recent losses offered some support, said Frank Lesh, broker and analyst at FuturePath Trading in Chicago.
Gold is likely to trade sideways in the next few sessions, he added. “We have put a lot of value here too fast, and when gains come too fast they don’t hold,” he said.
It’s difficult to judge how recent stock market weakness, debt-ceiling negotiations, and the European debt crisis have affected the U.S. economy, Bernanke said, but he also offered a slightly more positive take on the economy.
The Fed expects “a moderate recovery” to continue and strengthen over time, Bernanke said.
Friday’s gains carried over from the previous session, taking some of the sting of the earlier correction.
Gold futures added $5.90, or 0.3%, to finish at $1,763.20 an ounce Thursday on Comex. See report on Thursday’s gold moves.
Friday gains also came as the dollar weakened, with the dollar index DXY -0.56% falling to 73.754 compared to 74.262 late Thursday.
Dollar-denominated gold tends to rise as the U.S. currency falls. See currencies.
The broader suite of metals on Friday traded higher, with the exception of silver.
September silver SI1U +0.43% lost 15 cents, or 0.3%, to $40.63 an ounce. On the week, silver has declined 4.2%.
September copper HG1U +0.42% added 2 cents, or 0.5%, to $4.10 a pound. Copper has gained 3.1% so far this week.
Palladium for the same month PA1U +0.71% rose $4.70, or 0.6%, to $755.85 an ounce, while the October contract PL1V +0.36% of sister metal platinum gained $4, or 0.2%, to $1,826.40 an ounce.
Platinum and palladium diverged in weekly results, however. Palladium has risen 0.8% so far this week, while platinum has lost 2.6%.
