Spot gold prices have edged their way higher Monday as diminishing prospects for global growth help support expectations of more stimulus measures from various central banks around the world. Gold and oil prices have advanced during Asian traded hours this morning, underpinned by an increased probability that the Federal Reserve will add some stimulus measures to boost growth at its next meeting on Sept 11-12. Weaker than expected Japanese GDP data released before this morning’s market open has helped keep gold prices in stimulus mode. Market participants in gold will now be closely eyeing the US Federal Reserve symposium, scheduled to take place later this month in Jackson Hole, Wyoming, which will be expected to shed some light on the Fed’s attitude to additional stimulus measures. Spot gold prices initially held at lows of $1619.27 before edging their way up to intra-day highs of $1625.20 a troy ounce. Some resistance is anticipated around the $1628/30 area. Spot gold currently trades at $1622.80, marginally higher from Friday’s close of $1620.15 a troy ounce.
EasyForexNews Research Team