During U.S. Congressional testimony on Wednesday and Thursday, chairman Ben Bernanke with the U.S. Federal Reserve said it presently is too soon to decide about tapering asset purchases in September.
With easing measures remaining as they are, the market will be flooded with the U.S. dollar, which waters down its strength. The precious metal and the U.S. dollar typically perform the inverse of one another.
"Most believe that Bernanke's comments indicated the Fed will keep its quantitative easing in place at least a little longer than what it thought just a few weeks ago," states a report penned by global training director Peter Hug with Kitco Metals Inc., according to Reuters.
At 11:45 a.m. on Friday, gold futures rose 0.89 percent, an $11.41 surge to $1,295.64 per troy ounce.
A half-year to forget
Despite gains as of late, this year has not been the best for the yellowish metal. Through the Thursday trade session, gold futures have dived 23 percent this year. With less than five-and-a-half months remaining, the likelihood continues slipping that bullion will prolong its bullish streak of annual gains past 12 straight years.
The Wall Street Journal reports that gold lost 27 percent of its value during the first half of this year.
One factor that prompted the downward dive of the precious metal during that time period was the strengthening of the U.S. job market, which indicates the U.S. economy is recovering from the Great Recession.
Reuters reports the U.S. dollar was edging down in value during the Friday trade session. But the Fed chief also noted that whether the body he leads will adapt and adjust policy will hinge largely on the economic data they monitor.
"It is still unclear whether the Fed's tapering will start in September or December, and we still need some clarification on that before there will be a clear direction for the dollar and in turn for gold," analyst Christin Tuxen with Danske Bank told Reuters on Friday. "At the moment there is not much to drive gold but a few ups and downs in the euro/dollar trade," she added.
This week's gains for the precious metal are forecast to be about 0.5 percent. Last week's gains were markedly higher, checking in at advances of roughly 5 percent.
Twenty richest nations to convene
The Group of 20 is set to convene in Moscow over the weekend and Reuters reports the summit is likely to devote some attention to discussing volatility that recently has beset the markets.
Following the G20 meetings, the U.S. is slated to release significant economic data next week. That data is likely to do its part to contribute to the central bank's decision about whether it will taper stimulus measures.
"With a raft of U.S. housing and manufacturing measures next week, this should give the market a little more direction, but a breakout of the ($1,270-$1,300/oz) range may depend on the next U.S. non-farm payrolls read on Aug. 2," ANZ Research stated, according to Reuters.
MarketWatch reports the U.S. dollar's slump on Friday pecked away at gains from the Thursday trade session. The dollar index, a gauge of the value of the daughter against six rival monetary units, dropped from the previous day.
Also benefiting the yellowish metal on Friday was U.S. equities losing value, according to MarketWatch. Underwhelming economic data regarding earnings of search monstrosity Google and Microsoft Corporation prompted equities to climb.
Another factor prompting bullion's climb on Friday was stock market losses, which directed investors toward the allure of gold as a haven for wealth.
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