The gold price held steady near $1,236 Monday morning as the price of gold and euro/U.S. dollar currency cross showed little movement from last week’s closing levels. The SPDR Gold Trust (GLD), which acts as a proxy for the gold price, was lower by $0.11 at $120.90 ahead of the U.S. equity market open. Heading into the final two days of the month, the gold price is higher by $55.12, or 4.7% in August, and by $140.77, or 12.9% year-to-date.
Coming off of its fourth consecutive weekly gain, the gold price will have to navigate a busy week of economic reports to extend its winning streak to five. This morning the U.S. Commerce Department announced that personal spending in July rose 0.4%, slightly ahead of the 0.3% expected by economists. Personal income increased 0.2%, in line with estimates, while the national savings rate fell from 6.2% in June to 5.9% last month. While the overall report included some positive and negative data, it did little to move the markets, as S&P 500 remained lower by 3 points at 1,061.
Later today investors will be eyeing comments from James Bullard, president of the Federal Reserve Bank of St. Louis, who will speak at a discussion on financial regulatory reform. Bullard drew significant attention earlier this month after releasing a 24-page treatise analyzing the threat of “Japanese-style deflation” and his preference for the Fed to expand its quantitative easing measures if the risks of deflation accelerate. Bullard’s comments helped propel the gold price noticeably higher, and given the Fed’s recent decision to restart the printing presses, the price of gold may receive another boost from the St. Louis Fed President.
Tuesday will see the release of the Case-Shiller Housing Index, Chicago PMI, Consumer Confidence, and the minutes from the latest Federal Open Market Committee meeting. The ADP Employment report, ISM Index and data on construction spending due Wednesday, while weekly jobless claims and pending homes sales will be reported on Thursday. The most highly anticipated report of the week will likely be Friday’s employment report, where the Bureau of Labor Statistics will report monthly nonfarm payrolls and the national unemployment rate.
While financial markets are often relatively quiet at the end of the summer, especially ahead of the Labor Day weekend, this week may prove different. If the economic data continues to deteriorate -witness last week’s dreadful housing reports - it will provide a continued catalyst for the gold price, as the Federal Reserve receives further evidence to maintain its easy monetary policies for the foreseeable future.
source:http://www.goldalert.com/stories/Gold-Price-Holds-Near-1236-
