Gold futures move lower after upbeat U.S. trade data
Investing.com
Published Jan 07, 2014 08:58AM ET
Gold prices move lower after upbeat U.S. trade deficit report
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,235.50 a troy ounce during U.S. morning trade, down 0.2%. Gold prices held in a tight range between USD1,233.20 a troy ounce and USD1,244.60 a troy ounce.
The February contract climbed to USD1,247.70 a troy ounce on Monday, the highest since December 16, before trimming gains to settle at USD1,238.00, down 0.05%.
Futures were likely to find support at USD1,212.60 a troy ounce, the low from January 6 and resistance at USD1,247.70, the previous day’s high.
The Commerce Department said in a report earlier that the U.S. trade deficit narrowed to USD34.25 billion in November from a deficit of USD39.33 billion in October, as exports to China rose to an all-time high. Analysts had expected the U.S. trade deficit to widen to USD40 billion in November.
The data showed that U.S. exports totaled USD194.86 billion, while imports came in at USD229.11 billion.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.
The U.S. central bank will reduce its bond-buying program by USD10 billion a month starting in January. Some market participants believe the Fed will likely taper its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Meanwhile, silver for March delivery fell 0.75% to trade at USD19.95 a troy ounce. The March contract ended Monday’s session 0.53% lower at USD20.10 a troy ounce.
Elsewhere on the Comex, copper futures for March delivery dipped 0.1% to trade at USD3.357 a pound. Prices of the industrial metal tumbled to USD3.330 a pound on Monday, the lowest since December 24.
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Written By: Investing.com
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