RTTN:Gold Extend Gains As Stimulus Hopes Weigh Dollar
The price of gold was extending gains for a fourth session Thursday morning as the US dollar was paring recent gains versus a basket of currencies after Federal Reserve chairman Bernanke's comments soothed investors fear over an early withdrawal of monetary stimulus measures.
Gold for August delivery, the most actively traded contract, rose $36.30 to $1,283.70 an ounce. Yesterday, gold settled higher for a third straight session as the US dollar weakened against a basket of major currencies ahead of the U.S. Federal Open Market Committee policy meet outcome. Investors also weighed some disappointing inflation data from China yesterday and rising oil prices, making gold an attractive option.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 939.07 tons from 939.75 tons.
Meanwhile, the U.S. dollar was leveling off from its six-week high versus the euro and a four-month high against sterling. The buck slipped back near its two-week low versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's whole sale prices increased modestly in June after falling for two months in a row, latest data from the Federal Statistical Office showed. The wholesale price index increased 0.7 percent on an annual basis in June, reversing decreases of 0.1 percent and 0.4 percent recorded in May and April. Economists were looking for an increase of 1 percent.
Elsewhere, the prices of silver and platinum were trading higher in morning deals.
From the U.S., the Labor Department will release its weekly jobless claims data at 8.30 a.m ET. Economists expect claims to have declined to 337,000 from 343,000 in the previous week.
Simultaneously, the Labor Department will also release its report on export and import prices. Economists estimate a 0.1 percent month-over-month drop in export prices for June, while import prices may have edged up by 0.1 percent.
