Thursday, July 26, 2012 8:27:34 AM

What is the gold price today? Gold prices held steady above $1,600 an ounce on Thursday but struggled to maintain yesterday’s momentum as bullion investors treaded with caution over lack of sound evidence on whether central banks will provide further monetary easing. Meanwhile, silver prices slipped in early trading on Thursday.


Gold futures for August delivery inched down 0.4%, at $1,601.70 an ounce, at last check.

Two separate media reports stated that both the Federal Reserve and the European Central Bank (ECB) were close to providing monetary measures in order to spur falling global economy.

On Wednesday, the metal hit its three week high as it rallied 1.5% for the day as bullion investors, encouraged over central banks’ possible economic stimulating measures, preferred investing in the bullion market.

Furthermore, comments from ECB governing council member also strengthened the euro, making gold cheaper for those dealers who deal in the euro zone’s single currency, boosting the demand. Typically, gold prices and euro move in tandem.

Nevertheless, gold’s onwards march lost its force on Thursday as analysts and investors begin to question whether another round of monetary easing will be able to save the global economy, considering the enormity of the crisis-( in case both banks provide further accommodative measures)

Commenting over this matter, Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen, said to Reuters, “Spain's public finance problems as well as poor data from the region led investors to believe that the ECB will intervene, but the foundation of this rally is rather shaky.”

Min also said that Federal Reserve is also ambiguous on further monetary easing and since the economic conditions have not deteriorated much, gold doesn't have much potential on the upside for the time being.

Now the spotlight will be on Fed’s next policy meet, scheduled next week.

Meanwhile silver futures also fell 0.8%, at $27.245 an ounce.

In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) rose more than 1.2%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) rose more than 2.5%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) fell more than 2.7%.

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