Gold retreats on dollar rise
Gold fell on
Friday, snapping a two-day record-setting rally, as the dollar rose and
Fed Chairman Ben Bernanke offered few new details on further economic
stimulus which prompted investors to take profits.
In a day of
volatile trade and a host of mixed market signals, bullion is still on
track to end higher for an 11th straight week, driven by a hardening
view that the Fed will resume buying government debt to stimulate the
economy.
On Friday, Mr
Bernanke delivered his most explicit signal yet that the U.S. central
bank is likely to use easier monetary policy as soon as its next
meeting in November. But he failed to offer the details that some gold
investors are craving to sustain the rally.
“The question is
for how much longer the market is prepared to run just on the
quantitative easing story. I think the market at these levels wants to
see the facts before committing additional capital to the upside,” said
Saxo Bank senior manager Ole Hansen.
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