FRX: Gold futures little changed after U.S. GDP data
Forexpros - Gold futures were flat during U.S. morning hours on Wednesday, after data showed that the U.S. economy grew at a faster rate than initially estimated during the second quarter, though the pace of growth remained too slow to shut the door on further easing by the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,667.55 a troy ounce during U.S. morning trade, easing up 0.01%.
Prices were stick in a narrow trading range of USD1,662.05 a troy ounce, the daily low and a session high of USD1,670.25 a troy ounce. Prices rallied to USD1,677.45 a troy ounce on August 27, the highest since April 13.
Gold futures were likely to find support at USD1,653.75 a troy ounce, the low from August 23 and near-term resistance at USD1,677.45, the high from August 27.
The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Gold traders continued to look forward to a speech by Federal Reserve Chairman Ben Bernanke at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed would pump more money into the financial system.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 7% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Prices also drew support from growing expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
In an article published in German’s Die Zeit newspaper, Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.
Elsewhere on the Comex, silver for December delivery eased down 0.01% to trade at USD30.95 a troy ounce, while copper for December delivery declined 0.35% to trade at USD3.457 a pound.
