Spot gold prices are trading in negative territory Wednesday as the lack of any hint of fresh stimulus measures from the Federal Reserve begins to take its toll on the precious metal. US Federal Reserve Chairman Ben Bernanke disappointed gold hawks by simply reiterating the stance that the Federal Reserve were prepared to take further action should the economic conditions worsen, but offered few hints surrounding the timing of such action. Some market participants still fully expect the green light to be given at some stage for some additional QE from the Fed given the potential fierce uphill challenges that lie ahead for the US economy, but the scenario remains peppered with uncertainty. Gold prices have retreated back from session highs of $1586.73 in Asia this morning and a few moments ago printed a new intra-day low at $1577.50, with the market now trading $1579.30, down $4.10 from the NY close.
EasyForexNews Research Team