Gold gains as Bank of Japan unveils stimulus plans

A A A - Gold prices rose on Tuesday after the Bank of Japan announced plans to ramp up its monetary stimulus programs next year.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.39% at USD1,693.65 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,686.55 and down from a high of USD1,695.85 a troy ounce.

Gold futures were likely to test support USD1,666.55 a troy ounce, Thursday's low, and resistance at USD1,696.25, Thursday's high.

The Bank of Japan earlier said it would roll out an open-ended asset purchasing program to stimulate the economy in 2014 and double its inflation target to 2%, which allowed gold to post gains, as stimulus measures should weaken the safe-haven yen.

Gains were muted somewhat as investors were hoping for the Bank of Japan to begin stimulating the economy sooner.

The Bank of Japan previously pledged to inject JPY101 trillion into markets with its asset-buying and lending program.

Meanwhile in the U.S., existing home sales fell unexpectedly in December, industry data showed on Tuesday, which capped the yellow metal's gains.

In a report, the National Association of Realtors said that home sales fell to 4.94 million units from 4.99 million in November, whose figure was revised down from 5.04 million.

Analysts had expected existing home sales to rise to 5.10 million last month.

Meanwhile on the Comex, silver for March delivery was up 1.13% and trading at USD32.293 a troy ounce, while copper for March delivery was up 0.65% and trading at USD3.703 a pound. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Forex and Currencies

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