Analysts
will be listening closely to Ben Bernanke for any hints that more bond
buys are in store, especially after the lack of immediate aid for the
troubled euro zone from the ECB.
SINGAPORE (Reuters) - Gold inched up on Thursday and hovered near one-month
highs, with investors hoping the U.S. central bank will take action to
stimulate the world's biggest economy and shield it from the fallout of
the euro zone debt crisis.
Spot gold gained 0.2 percent to
$1,620.16 an ounce by 0302 GMT, not too far off the one-month high of
$1,640.50 reached in the previous session.
U.S. gold futures contract for August delivery lost 0.8 percent to $1,621.80.
U.S. Federal Reserve Chairman Ben Bernanke will testify before Congress
on Thursday, a day after two influential officials in the central bank
said they were prepared to take even more policy action to boost the
erratic economic recovery.
Analysts will be listening to
Bernanke closely for any hints that more bond buys are in store,
especially after the lack of immediate aid for the troubled euro zone
from the European Central Bank, which put the onus firmly on European
policymakers to resolve the debt crisis.
Expectations that the ECB would take action had helped bullion rise on Wednesday.
"People have become more bullish after last Friday's employment
figures. The market may be entering a new phase on the expectation that
there will probably be some sort of easing," said Yuichi Ikemizu, head
of commodity trading, Japan, Standard Bank.
Gold has held around
$1,620 level since surging more than 4 percent last Friday after
disappointing U.S. employment data shook investors' confidence in the
economic recovery and fuelled hopes for more easing.
The euro traded little changed against the dollar, after jumping sharply
in the previous session after the ECB left rates and economic outlook
unchanged.
Supporting the euro and risk appetite in general,
Germany and European Union officials are urgently exploring ways to
rescue Spain's debt-stricken banks although Madrid has not yet requested
assistance and is resisting being placed under international
supervision.
Investors will eye the Greek elections on June 17
and a Group of 20 meeting on June 18-19 to gauge whether there is
political will in Greece to stay within the euro zone and what actions
will be undertaken to fight the bloc's debt crisis.
Spot silver
lost half a percent to $29.23, after jumping more than 3 percent and hit
a one-month high of $29.88 in the previous session.
(Editing by Miral Fahmy)
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