Gold surges as stimulus measures weaken greenback, lift demand

Gold futures traded higher during European trade Friday as economic stimulus measures are expected to lift demand for the yellow metal, as well as weakened the greenback. On the Comex division of the New York Mercantile Exchange, Gold futures for October delivery traded at USD1774.65 a troy ounce climbing 0.29%. It earlier traded at a session high USD1777.55 a troy ounce. Gold was likely to find support at USD1705.55 and resistance at USD1777.55. The Fed announced on Thursday that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the economy improves. "We want to see lower unemployment. We want to see a stronger economy that can cause the improvement to be sustained," Fed Chairman Ben Bernanke said following the central bank's two-day policy meeting. Traders are awaiting critical economic data from the United States later in the session. US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, plunged 0.62% to trade at USD78.89. Elsewhere on the Comex, Silver for December delivery gave back 0.28% to trade at USD34.675 a troy ounce while Copper for December delivery soared 3.28% to trade at USD3.832 a pound.

Courtesy: ForexPros