By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures advanced Thursday, vying to break a three-day losing streak as the bargain prices enticed investors back to the market and as most metals futures traded higher, led by copper.
Gold for August delivery GCQ2 +0.82% added $11.10, or 0.7%, to $1,581.90 an ounce on the Comex division of the New York Mercantile Exchange.
The precious metal lost $21 in the past three sessions, as disappointment with the testimony of U.S. Federal Reserve Chairman Ben Bernanke dragged prices lower. Bernanke acknowledged weakness in the economy but stopped short of signaling that more economic stimulus is forthcoming.
After Bernanke’s testimony, gold buyers concluded “we are back to basics and continued stimulus of some kind ... benefits gold if recovery in the meantime occurs,” said in a note to clients George Gero, a vice president with RBC Wealth Management.
Gold still needs to close above $1,600 an ounce and beyond “for a more improved technical picture,” he added.
Meanwhile, September copper HGU2 +1.40% rose 6 cents, or 1.6%, to $3.53 a pound. Copper markets "seem to be focusing on expectations that the Chinese authorities will now accelerate policies to rev up their economy,” Edward Meir, an analyst with INTL FCStone, said in a note to clients.
“However, we have our doubts that renewed government ‘pump-priming’ is going to do the trick, especially when most of China’s trading partners remain mired in recession or near recessionary levels,” he added.
September silver SIU2 +0.94% advanced 23 cents, or 0.9%, to $27.33 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
