Gold futures off the lows after U.S. GDP downward revision
Investing.com
Published Jun 26, 2013 09:07AM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,245.95 a troy ounce during U.S. morning hours, down 2.3% on the day.
Comex gold prices fell by as much as 4% earlier in the session to hit a daily low of USD1,223.45 a troy ounce, the weakest level since August 24, 2010.
Gold futures were likely to find support at USD1,210.05 a troy ounce, the low from August 24, 2010 and resistance at USD1,274.60, the high from September 14, 2010.
The Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.8% in the three months to March, below expectations for a 2.4% gain.
The data showed personal consumption grew 2.6% in the first quarter, missing forecasts for a 3.4% increase. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
Gold prices fell to the lowest level since September 2010 earlier in the session amid concerns the Federal Reserve could taper down its bond purchases amid increasing signs of a recovery in the U.S. economy.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
Elsewhere on the Comex, silver for September delivery tumbled 3.2% to trade at USD18.93 a troy ounce. Comex silver prices fell to a session low of USD18.39 a pound earlier in the day, the lowest level since August 25, 2010.
Meanwhile, copper for September delivery declined 0.3% to trade at USD3.067 a pound.
Copper futures fell to a three-year low of USD2.985 a pound on Tuesday, as investors remained concerns about a cash crunch in the Chinese financial system.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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Written By: Investing.com
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