Spot gold prices are trading lower Tuesday, extending their losses posted from the previous session. Spot gold ended Monday’s session $6.70 lower at $1663.90 a troy ounce as market participants scaled back some of their expectation levels that the Federal Reserve will embark on a fresh wave of stimulus measures at its next meeting on Sept 12-13. Expectations that a fresh round of stimulus measures had sharpened last week, when minutes of this month’s FOMC meeting revealed that the Fed were ready to do something fairly soon unless the US economy improved. Federal Reserve Chairman Ben Bernanke is set to deliver his speech at the central bank symposium at Jackson Hole this Friday, but some economists are expressing caution, with today’s Daily Telegraph reporting that economists are playing down the prospects saying that it will not produce the “shock and awe” results seen back in August 2010. Despite a lowering of expectations, spot gold continues to trade above $1650 a troy ounce. Price have continued to correct back, falling from highs of $1666.74 in Asia to hold at lows of $1657.54, now $1659.80.
EasyForexNews Research Team