Gold futures lower ahead of U.S. data, Fed
Investing.com
Published Jul 30, 2013 08:03AM ET
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,324.85 a troy ounce during European afternoon hours, sliding 0.33%.
The December contract settled up 0.58%, at USD1,329.6 a troy ounce on Monday.
Gold futures were likely to find support at USD1,308.75 a troy ounce, the low from July 25 and resistance at USD1,340.15, the high from July 26.
Markets were jittery ahead of the Fed's upcoming monetary policy statement after a recent string of U.S. economic reports fuelled further uncertainty over whether the central bank will soon begin to scale back its bond-buying program.
On Monday, industry data showed that U.S. pending home sales fell 0.4% in June, less than the expected 1% decline, after a 5.8% rise the previous month.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Traders were looking ahead to data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence, later in the trading day.
Elsewhere on the Comex, silver for September delivery dropped 1.12% to trade at USD19.642 a troy ounce, while copper for September delivery tumbled 1.52% to trade at USD3.060 a pound.
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Written By: Investing.com
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