By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures rose in electronic trading Friday, ahead of a much-anticipated speech from Federal Reserve chairman Ben Bernanke later in the session that could signal fresh stimulus measures.
Gold for December delivery GCZ2 +0.13% added $1.10, or 0.1%, to $1,658.20 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours. For the week, gold has lost 0.7%.
Investors were keenly awaiting a speech from Federal Reserve chairman Ben Bernanke to gathering of central bankers at Jackson Hole, Wyoming, later in the session.
The speech may be used to signal the details of a possible third round of quantitative easing measures by the Fed, which would be positive for gold prices.
HSBC precious metals analyst James Steel noted that gold has rallied significantly ahead of the gathering.
“This may mean that the risk for gold is to the downside if the Fed chairman does not signal clearly — or loudly — enough that further monetary easing is likely on the way,” Steel said in a research note.
He added that gold traders may also position before the U.S. Labor Day holiday on Monday “to avoid being caught on the wrong side in a market with low liquidity should Bernanke surprise the financial markets with a bold statement.”
The broader metals complex tracked gold higher in electronic trading, with copper the leading advancer. December copper HGZ2 -0.03% edged up 1 cent, or 0.2%, to $3.45 a pound.
Silver for December delivery SIZ2 -.00% , added 3 cents, or 0.1%, to $30.40 an ounce, while palladium for the same month’s delivery PAZ2 +0.11% added 40 cents, or 0.1%, to $616.80 an ounce.
October platinum PLV2 +0.10% climbed $1.70, or 0.1%, to $1,505.40 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
