Gold climbs in Asia after small U.S. loss
Published Aug 26, 2013 08:39PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery rose 0.73% to USD1,403.10 per troy ounce in Asian trading Tuesday. The October contract settled 0.19% at USD1,393.00 per ounce Monday.
Gold futures were likely to find support at USD1,351.90 a troy ounce, Tuesday's low, and resistance at USD1,423.25, the high from June 6.
More concerning U.S. economic data along with geopolitical tensions weighed on U.S. stocks, but traders did not run to gold as a safe-haven because concerns remain about Federal Reserve tapering of its quantitative easing program.
Stimulus tools such as the Fed's USD85 billion in monthly bond purchases tend to weaken the dollar by driving down interest rates, making gold an attractive hedge.
In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June. Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.
Recently, weak U.S. data points have stoked speculation the Fed will not taper imminently, though the minutes from the central bank’s July meeting released last week revealed there is some consensus for tapering later this year.
Elsewhere, Comex silver for December delivery jumped 0.91% to USD24.275 per ounce while copper for September delivery added 0.58% to USD3.347 per ounce.
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Written By: Investing.com
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