Gold futures lower with Fed, U.S. debt ceiling in focus
Investing.com
Published Oct 09, 2013 03:29AM ET
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,316.80 a troy ounce, down 0.6%.
Prices traded in range between USD1,316.70 a troy ounce, the daily low and a session high of USD1,321.70 a troy ounce.
The December contract ended 0.04% lower on Tuesday to settle at USD1,324.60 a troy ounce.
Gold futures were likely to find support at USD1,278.20 a troy ounce, the low from October 2 and resistance at USD1,337.80, the high from October 1.
A White House official said Tuesday that President Obama will nominate Janet Yellen as the next Federal Reserve chairman. The announcement is scheduled for 3pm ET on Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Investors were looking ahead to the minutes of the central bank’s most recent policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Meanwhile, investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised.
Elsewhere on the Comex, silver for December delivery fell 0.8% to trade at USD22.26 a troy ounce, while copper for December delivery declined 0.75% to trade at USD3.267 a pound.
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Written By: Investing.com
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