Gold Futures Advance, Spot Gold Dips On Profit-taking

Forexpros
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Forexpros – Gold futures were up for a third day on Monday, after Federal Reserve Chairman Ben Bernanke said the central bank remained prepared to implement fresh stimulus measures, while spot gold prices declined as investors locked in gains following Friday&rsquo;s 3% rally.&nbsp; <br /><br />On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,821.35 a troy ounce during late Asian trade, jumping 1.45%.&nbsp;&nbsp;&nbsp; <br /><br />It earlier rose as much as 1.85% to trade at USD1,838.85 a troy ounce, the highest price since August 24.<br /><br />In a highly-anticipated speech at the central bank&rsquo;s annual retreat in Jackson Hole, Wyoming, Fed Chair Bernanke said the central bank remained prepared to implement fresh measures to stimulate the faltering U.S. economy.<br /><br />&ldquo;The Fed has a range of tools that could be used to provide additional monetary stimulus&rdquo;, Bernanke said without outlining when and if this may happen. <br /><br />Bernanke also announced that the central bank&rsquo;s September policy-setting meeting would be extended to two days from one, in order to &ldquo;allow a fuller discussion&rdquo; on the economy.<br /><br />Global financial service provider Deutsche Bank noted in a report late Friday that while the Fed was &ldquo;not prepared to act at this point, it kept a bias to ease in place.&rdquo;<br /><br />Bernanke&rsquo;s comments saw the greenback come under pressure. The euro traded at a two-month high against the dollar, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2% to trade at 73.62, the lowest since August 17. <br /><br />Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.<br /><br />Spot gold prices, meanwhile retreated 1.04% to trade at USD1816.55 a troy ounce, as investors cashed out of the market to lock in gains from Friday&rsquo;s 3.2% rally.<br /><br />Elsewhere on the Comex, silver for December delivery edged 0.51% higher to trade at USD41.21 a troy ounce, while copper for December delivery eased up 0.05% to trade USD4.115 a pound.<br /><br />

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