Futures Market News
Gold futures bounce higher as intervention chatter grows louder
Apr 12, 2012 02:55 PM
The price of gold futures spiked higher on Thursday, pushed by the emboldened monetary unit of the euro zone, according to Reuters.
The yellowish metal also benefited from mounting speculation about the U.S. Federal Reserve deploying additional monetary stimulus, which floods the market with U.S. dollars. The value of the U.S. dollar would drop and gold futures would climb as the two typically perform the inverse of one-another.
"It's good that gold has bounced back up. I don't expect sustained losses, but neither do I expect sustained gains, because tomorrow you have Chinese GDP data but you also have U.S. inflation and that is going to be closely watched," analyst Andrey Kryuchenkov with VTB Capital told the news source.
At 3 p.m. on Thursday, gold futures climbed 1.13 percent, an $18.80 lift to $1,679.10 per troy ounce.
Dow Jones Newswires reports President William Dudley with the Federal Reserve Bank of New York said the world's largest economic system has not emerged from peril. His remarks come one day after the vice chair of the U.S. Federal Reserve said monetary stimulus remains an option to spur the U.S. economy.
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