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MTECHTIPS:-Gold falls on mixed Bernanke comments
Gold futures traded lower during Thursday’s Asian session, extending losses accrued on Wednesday in the U.S. due to mixed comments from Federal Reserve Chairman Ben Bernanke during congressional testimony. On the Comex division of the New York Mercantile Exchange, gold futures for July delivery fell 0.28% to USD1,363.55 per troy ounce in Asian trading Thursday after settling down 0.48% at USD1,371.05 a troy ounce in U.S. trading on Wednesday. Gold futures were likely to test support USD1,323.00 a troy ounce, the low from April 16, and resistance at USD1,444.15, the high from May 14.
On Wednesday, Bernanke said the Fed’s USD85 billion per month bond-buying program, also known as the third version of quantitative easing, will stay in place for now. That is what financial markets wanted to hear, but the Fed chairman threw a curve ball by saying QE could taper off if conditions in the world’s largest economy improve. In prepared testimony in Congress earlier, Bernanke said ultra-loose monetary policy was providing "significant benefits" to the economic recovery and reiterated that the bank’s asset-purchasing program will remain in place for now.
On Wednesday, Bernanke said the Fed’s USD85 billion per month bond-buying program, also known as the third version of quantitative easing, will stay in place for now. That is what financial markets wanted to hear, but the Fed chairman threw a curve ball by saying QE could taper off if conditions in the world’s largest economy improve. In prepared testimony in Congress earlier, Bernanke said ultra-loose monetary policy was providing "significant benefits" to the economic recovery and reiterated that the bank’s asset-purchasing program will remain in place for now.
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