Gold is poised to gain for a fifth day in the best run since June on speculation that minutes from the Federal Reserve’s latest meeting may point to additional stimulus as investment holdings remain near an all-time high. Immediate-delivery gold was little changed at $1621.80 an ounce at 11am in Singapore after gaining 1.3 per cent in the preceding four sessions. Exchange-traded product holdings totaled 2432.33 metric tonnes yesterday, compared to the record 2433.31 tonnes on August 17, according to data tracked by Bloomberg. The Federal Reserve is due to publish minutes tomorrow of the meeting that ended on August 1. That day the Federal Open Market Committee said in a statement the bank will ‘‘provide additional accommodation as needed’’ to create jobs as the crisis in Europe and fiscal constraints in the US weigh on the economy. The market is ‘‘looking for signs of further easing bias in the US’’, said Natalie Robertson, an analyst at Australia & New Zealand Banking Group Ltd. ‘‘Because markets are expecting some sort of stimulus from central banks in the US, Europe or China, if there is any disappointment, there is a lot of downside risk in prices.’’ December-delivery bullion was little changed at $1623.80 an ounce on the Comex in New York. In Europe, Luxembourg Prime Minister Jean-Claude Juncker, head of the euro group of finance ministers, visits Greece tomorrow for talks on the nation’s fiscal-adjustment program. German Chancellor Angela Merkel and French President Francois Hollande meet in Berlin on Thursday to discuss the debt crisis.
Silver futures hit a fresh two-month high as silver bulls gained fresh upside technical momentum. December gold last traded up $3.70. September Comex silver last traded up $0.663 at $28.66 an ounce. It was yet another quiet summertime trading day in the market place Monday. There has been little “headline risk” in recent weeks, as much of Europe is on vacation and the U.S. moves through the summertime doldrums. Traders and investors are really looking forward to the Jackson Hole, Wyoming U.S. Federal Reserve confab next week, and the mid-September FOMC meeting. Many raw commodity and stock market bulls are hoping the Fed will soon announce a fresh quantitative easing of monetary policy–nicknamed QE3. The minutes of the last FOMC meeting are due out this Wednesday. September silver futures closed up $0.588 an ounce at $28.595 Monday. Prices closed near the session high, hit a fresh two-month high and scored a bullish “outside day” up on the daily bar chart. Monday’s price action could be the beginning of a bullish upside breakout from a sideways and choppy trading range on the daily bar chart. Silver bulls and bears are now back on a level near-term technical playing field, but bulls do have fresh upside momentum. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $29.915 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $26.88. First resistance is seen at Monday’s high of $28.645 and then at $29.00. Next support is seen at $28.445 and then at $28.335.
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