By: Reuters
Although the lingering debt crisis in Europe and volatile currencies were supportive for gold, the metal could take its cue from the follow-up to Obama's proposal after the Republican speaker of the House of Representatives said the plan "merits consideration".
Spot gold [XAU= 1865.59
-2.67 (-0.14%) 
]eased 0.45 percent to $1,859.91 an ounce by 0247 GMT, well below a lifetime high of around $1,920 hit this week, with speculators still taking profits from Thursday's 3 percent rally.
"I think Obama's speech was actually better-than-expected. The market was pricing in for a $300 billion dollar package," said Natalie Robertson, a commodities strategist at ANZ.
"Also a senior Republican said the proposal merits consideration, so that could also be seen as a sign the Republicans could pass the bill. The risk for gold is to the downside, but I think it will settle at around $1,800 to $1,810."
Obama laid out a $447-billion jobs package of tax cuts and government spending on Thursday to revive a stalled job market, challenging Congress to enact the plan which is critical to his re-election chances.
Other markets shrugged off the speech and instead focused on economic data from China, with the Nikkei flat and the dollar little changed against other currencies.
Obama also said he would propose a deficit-reduction plan on Sept. 19 that will cover the cost of his jobs bill and include "modest adjustments" to the government's health insurance programs and more taxes for the rich and corporations.
U.S. gold futures [GCCV1 1865.30
7.80 (+0.42%) ] added $5.2 an ounce to $1,862.7 an ounce.
Gold ticked down more than half a percent on Friday, having risen sharply in the previous session, as investors digested U.S. President Barack Obama's $447 billion jobs plan to spur economic growth and battle unemployment.
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Anthony Bradshaw | Getty Images |
Spot gold [XAU= 1865.59
-2.67 (-0.14%) ]eased 0.45 percent to $1,859.91 an ounce by 0247 GMT, well below a lifetime high of around $1,920 hit this week, with speculators still taking profits from Thursday's 3 percent rally. "I think Obama's speech was actually better-than-expected. The market was pricing in for a $300 billion dollar package," said Natalie Robertson, a commodities strategist at ANZ.
"Also a senior Republican said the proposal merits consideration, so that could also be seen as a sign the Republicans could pass the bill. The risk for gold is to the downside, but I think it will settle at around $1,800 to $1,810."
Obama laid out a $447-billion jobs package of tax cuts and government spending on Thursday to revive a stalled job market, challenging Congress to enact the plan which is critical to his re-election chances.
Other markets shrugged off the speech and instead focused on economic data from China, with the Nikkei flat and the dollar little changed against other currencies.
Obama also said he would propose a deficit-reduction plan on Sept. 19 that will cover the cost of his jobs bill and include "modest adjustments" to the government's health insurance programs and more taxes for the rich and corporations.
U.S. gold futures [GCCV1 1865.30
7.80 (+0.42%) ] added $5.2 an ounce to $1,862.7 an ounce. Asian stocks inched up on Friday as slightly weaker Chinese consumer prices data soothed fears over inflationary pressures building in the world's No.2 economy, but the mood was cautious after Western central banks failed to offer any fresh stimulus plans.
Bullion ignored the Chinese data, which was within market expectations.
Investors turned their attention again to the state of the U.S. economy afterFederal Reserve![[cnbc explains]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_syuYBtGzjLe8W9Fk5fClOhG790s5E89cRSuW3RHwMqiRksLq52k-NOFdOq-9qbu1LZWEo5515kuLjaEysCN_Tv0zez3m3d3WE371DMOLEgZipK83xMKPJv1Feei9Y7e-Ta5avWsVzofCeFoagMOlTMk3L6qfleILyaVd9LTpuCMy2iNX1jDnEOl0cKtBcqew=s0-d)
Chairman Ben Bernanke said the U.S. central bank "will do all it can" to boost economic growth and reduce unemployment without offering details.
Bullion ignored the Chinese data, which was within market expectations.
Investors turned their attention again to the state of the U.S. economy afterFederal Reserve
Chairman Ben Bernanke said the U.S. central bank "will do all it can" to boost economic growth and reduce unemployment without offering details.The uncertainties around global economic growth have driven gold prices to scale record highs since July, and are expected to underpin sentiment for the metal until investors are convinced the danger of recession is past.
"The lack of details on further stimulus plans that the Fed could pursue may prompt some short term profit-taking in gold. However, on the long term, I think gold remains attractive amidst slowing growth and economic uncertainty," said Ong Yi Ling, an analyst at Phillip Futures.
"Time will be needed before the measures proposed by President Obama are implemented and translates into growth. Effects will be lagged and it's not going to improve the job markets so quickly."
In the energy market, U.S. crude futures slipped in early trade after Obama's announcement, which fell within market expectations.
"The lack of details on further stimulus plans that the Fed could pursue may prompt some short term profit-taking in gold. However, on the long term, I think gold remains attractive amidst slowing growth and economic uncertainty," said Ong Yi Ling, an analyst at Phillip Futures.
"Time will be needed before the measures proposed by President Obama are implemented and translates into growth. Effects will be lagged and it's not going to improve the job markets so quickly."
In the energy market, U.S. crude futures slipped in early trade after Obama's announcement, which fell within market expectations.
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