Gold gains on Middle East unrest,talk of Japanese monetary easing
Published Nov 20, 2012 10:10PM ET
Bargain hunting and talk of monetary easing in Japan sent the metal rising.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.20% at USD1,727.05 a troy ounce, up from a session low of USD1,725.45 and down from a high of USD1,729.15 a troy ounce.
Gold futures were likely to test support at USD1,715.85 a troy ounce, Monday's low, and resistance at USD1,735.55, Monday's high.
In Brussels, Eurozone policymakers opened a meeting to discuss Greece's finances, with a EUR31.5 billion tranche of aid pending approval.
Investors waited on the sidelines awaiting an announcement, which sent gold falling before bargain hunters brought the metal back up.
Meanwhile in the U.S., nerves remained on edge due to uncertainty over the fiscal cliff, a combination of expiring tax breaks and inbound spending cuts converging at the same time after the end of this year.
If left unaddressed by Congress, the fiscal cliff could throw the U.S. economy into a recession next year.
Earlier, Federal Reserve Chairman Ben Bernanke urged the White House and Congress to find a way to steer the U.S. economy away from the cliff.
Gold, meanwhile, rose on hopes escalating Middle East violence will soon end in a ceasefire.
Israeli security forces and Hamas militants continued to engage in military campaigns in the Gaza Strip.
Meanwhile, growing sentiments that Japanese opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections and usher in loose monetary policies bolstered gold prices as well.
Abe has said he favors more aggressive monetary stimulus measures to jolt the Japanese economy.
Elsewhere on the Comex, silver for December delivery was up 0.51% and trading at USD33.097 a troy ounce, while copper for December delivery was down 0.66% and trading at USD3.504 a pound.
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Written By: Investing.com
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