Gold move up again when come to closing time, end at 1593.65 per ounce

The gold price moved slightly lower, sliding $3.10 to $1,584.25 per ounce Friday morning as profit taking weighed on the yellow metal. Gold move up again when come to closing time, end at 1593.65 per ounce. The price of gold has gained 2.5% this week and 5.5% this month on the back of lingering sovereign debt issues and concerns U.S. policymakers will fail to reach an agreement to raise the $14.3 trillion debt limit.

Gold prices showed little reaction to the release of the Consumer Price Index (CPI) this morning. The June CPI fell 0.2% versus the previous month and rose 3.6% year over year. The figures were in-line with market expectations and failed to move either gold or the broader stock and commodity markets. S&P 500 stock futures gained 3.50 to 1310.20 while oil climbed $0.43 to $96.12 per barrel.

On the first day of Bernanke’s semiannual testimony to Congress, the Federal Reserve Chairman created headlines when he stated that “The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support.”

While Bernanke’s comments on Wednesday helped send the gold price to a new all-time high, on Thursday he carried a much less dovish tone. “We’re not prepared at this point to take further action,” the Fed Chairman noted.

Although Bernanke’s latest commentary put pressure on the broader equity and commodity markets, the gold price displayed its resiliency by rebounding into positive territory as the day concluded. While the Fed may not immediately launch QE3, record high gold prices indicate that the markets believe a third round of asset purchases may not be too far away.

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