Futures Market News
Gold futures' upward drive resumes
Jun 13, 2012 12:35 PM
One trading session after surmounting the psychological price of $1,600 per troy ounce, the yellowish metal continued the upward drive as a weaker dollar typically benefits the price of the yellowish metal. Retail sales fell for a second consecutive month in May, revealing their largest drop in 24 months.
The Wall Street Journal reports speculation about additional economy-spurring measures by the U.S. Federal Reserve and its chief Ben Bernanke also were beneficial to the price of the yellowish metal on Wednesday.
"People are clearly betting that Bernanke may warm towards more [quantitative easing] and implement QE3. It's a realistic possibility, maybe what they will do is indicated that the bias has shifted towards doing some QE ... that will be enough to put a floor under the gold price," analyst Robin Bhar with Societe Generale told Reuters. "We've had poor non-farm payrolls, poor retail sales data today and a welter of other soft data."
At 12:56 p.m. on Wednesday, gold futures climbed 0.15 percent, a $2.40 lift to $1,616.20 per troy ounce.
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