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Gold Fall, however 2.15 percent Weekly Rise Biggest in a Month

Precious metal turned modestly lower on Friday as some players exited positions ahead of a long US weekend however registered its largest weekly percentage gain in a month, supported by a fall in stock markets and a softer US dollar.

Comments from a Federal Reserve official that dampened talk the US central bank is set to restrain monetary stimulus also underpinned yellow metal prices, which stuck to a fairly tight range.

Spot gold was down 0.23 percent at $1,387.51 per ounce by 2:37 EDT (1837 GMT), slightly lower than $1,390.40 late on Thursday. It remained up 2.15 percent on the week, its largest weekly rise since late April.

COMEX June gold futures closed at $1,386.6 per ounce, drop $5.2 or 0.37 percent and held about those levels in after-hours business.

Bullion got a boost this week from declining equity markets, which in Europe on Thursday posted their largest one day drop in nearly a year. On Friday, US stocks knock down for a third day, putting indexes on track for their first negative week since mid-April.

Robin Bhar, metals analyst at Societe Generale Group in London, a weaker greenback combined with continued QE, some physical buying at the lower levels out to China in particular all of those factors have helped precious metal in the last few days.

QE refers to quantitative easing, or the Federal Reserve’s program of buying almost $85 billion per month in debt to keep US interest rates low and stimulate the economy.

The US dollar extended its decline against the yen and was on track for its largest weekly loss in three years against the Japanese currency. The euro climbed 0.7 percent this week against the dollar its first weekly addition in three periods.

During the US session, precious metal ventured into negative regions with some players reluctant to hang onto a long gold position over the extended Memorial Day weekend in the US, given the newest uncertainty about Federal Reserve policy.

Speculation the Fed would scale back its monetary easing program evaluate on yellow metal this week after Fed Chairman Ben Bernanke stated the central bank could start scaling back its $85 billion in monthly bond purchases in the next few meetings.

But, St. Louis Fed President James Bullard stated on Friday that US inflation would have to pick up before he voted to scale back stimulus.

Bhar said there’s a lot of uncertainty, there’s still no better than 50/50 chance that the Fed will unwind its stimulus or that the economy performs as they expect it will.


Federal Reserve Chairman Ben Bernanke To Face Fed Critics In Testimony To Congress

Bernanke face the first of two days of congressional demonstration that will subject the Fed’s contentious bond buying program to strong scrutiny and measure his confidence in the resilience of the US economy.

Approaching just a week following the Fed’s conference notes sent US stocks reeling by signifying the central bank could pull back its economic incentive earlier than had been expected, and a day following another sharp stock market plunge, investors are sure to hang on every word.

Starting with the US Senate Banking Committee on Tuesday, the scholarly Fed chief will be questioned by some bitter critics of the violent steps he has supporter to encourage growth. On Wednesday, he will emerge prior to the House Financial Services Committee.

Economists at TD Securities in New York stated in a note to clients that his opinion remains that there is still not sufficient growth, that high unemployment is a recurring issue there is not adequate inflation. He will keep the switch to the metal deep into 2013.

The Fed chairman’s equipped testimony is planned to be released at 10 a.m. (1500 GMT) Today, pursue by a lengthy question and answer session. By custom, he will issue the same declaration on Wednesday prior to facing the House panel.

Lawmakers in both chambers will look for his remarks on the possible impact of $85 billion in across the board government spending cuts that are set to take effect on March 1.

Ben Bernanke is expected to repeat his line that the random chopper they take to the budget will hurt the upturn, and disputed that it would be better to cut the deficit over time and avoid the risk of a near term fiscal astonishment.

Lawmakers will also question him regarding the Fed’s bold bond buying program, which has tripled the dimension of the central bank’s balance sheet to $3 trillion since 2008.


Labor Department Stated Job Growth Accelerate, Giving President Barack Obama Some Liberation

Employers stepped up employing in October and a little enlargement in the jobless rate was due to more workers resuming their job hunts, a optimistic sign for a uninspiring economy that has been a drag on President Barack Obama’s re-election bid.

The jobless rate climbed up a tenth of a point to 7.9 percent, however that was due to workers rolling back into the labor force. Only candidate who are looking for a job count as unemployed.

Labor Department stated on Friday, Employers added 171,000 jobs to their payrolls previous month. The government also stated 84,000 more jobs were produced in August and September than formerly estimated.

Millan Mulraine, an economist at TD Securities in New York said that this report is steady with the rising picture of an economic recovery that is continuing to recover traction following grinding to a halt earlier this year.

The more than expected statistics was the previous major report card on the economy prior to Tuesday’s presidential election. Polls illustrate Obama and Republican Mitt Romney locked in a dead heat in a race in which the nation’s weak jobs market has been center and front.

Obama stated that the report showed the economy progressing in the right direction. We have made real progress, he stated a rally in Hilliard, Ohio.

Romney cast the superior jobless rate as a indication of the economy’s ills. Romney said in a statement that the economy is at a virtual standstill, Glenn Hubbard, his top economic adviser, said a jobs growth figure near to 300,000 would be required to illustrate an economy with real vigor.

Though the climb in the jobless rate was expected, the boost in payrolls beat even the most positive prediction. US stocks opened higher however then dropped, as the US dollar strengthened and prices were mixed for extended dated US government debt.