US old futures finished pit trade Tuesday weaker but up from the daily lows as bargain hunters stepped in to buy the dip in prices in the immediate aftermath of the morning testimony from Federal Reserve Chairman Ben Bernanke.
Aug Gold last traded - 3.20 at 1,588.40 oz.
Spot Gold was last quoted + 0.40 at 1,589.50 oz.
Sept Comex Silver last traded + 0.029 at 27.35 oz.
Mr. Bernanke's semi-annual monetary policy speech before the US Senate saw traders and investors generally disappointed the Fed chief's remarks did not include any fresh clues on easing of US monetary policy coming soon.
Mr. Bernanke did give another downbeat assessment of the US economy Tuesday. Many believe the US central bank will start another round of quantitative easing (QE-3) of monetary policy in the near future. Those notions also helped to lift gold prices up from their daily lows Tuesday.
In overnight news: European stocks were firmer despite another weak German ZEW economic reading, which was in line with trade expectations. Yields were down sharply on a Spanish Treasury bill auction Tuesday.
Moody's ratings agency again downgraded several more Italian banks' credit ratings late Monday, but the market place took it in stride.
The USD index is traded steady to slightly higher Tuesday. The Greenback Bulls still have upside near-term technical momentum, and that has been a negative weight on Gold prices recently.
Nymex Crude Oil futures prices firmed Tuesday. Trading in Crude Oil has turned choppy, but there are still early clues the Crude Oil market has put in a bottom.
WTI Crude Oil 89.13 +0.70 (0.79%)
The London PM Gold fix is 1,585.25 vs. the prior London PM fixing at 1,589.75.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.