Spot gold prices are trading marginally lower Friday after posting highs of around $1675 a troy ounce during the previous session. Gold ended Thursday’s session $16 higher at $1670.60 after some additional short covering related to the Fed minutes helped extend the precious metal to the upside along with the market now fully pricing in some stimulus measures from the US Federal Reserve at its next meeting scheduled for Sept 12-13. Comments made yesterday from St. Louis President James Bullard, stating that the US economic outlook had brightened since the previous FOMC policy meeting, has not really had too adverse an effect on the gold market which continues to remain firm ahead of the next Fed meeting over Sept 12-13. The comments from Bullard suggest to some market participants that the move observed higher from the Fed’s minutes may have been overdone and that the minutes may now look a bit stale. Spot gold prices have moderately corrected in Asia this morning, fading back from highs of $1672.65 to hold at intra-day lows of $1665.07, with the market currently trading $1666.5, down $4.10.
EasyForexNews Research Team