Investing.com - Gold futures tumbled to a four-week low during European morning hours on Thursday, amid speculation the Federal Reserve will start tapering its bond-buying program at its upcoming policy meeting next week.
Some technical selling also contributed to losses after prices fell through key support levels.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,345.70 a troy ounce during European morning hours, down 1.3%.
Gold fell by as much as 1.5% earlier to hit a session low of USD1,343.60 a troy ounce, the weakest level since August 15.
The December contract ended Tuesday’s session little changed at USD1,363.80 a troy ounce.
Futures were likely to find support at USD1,318.10 a troy ounce, the low from August 15 and resistance at USD1,387.10, the high from September 10.
Gold’s losses accelerated after prices broke below their 100-day moving average close to the USD1,356-level, triggering a flurry of automatic sell orders amid bearish chart signals.
Market players looked ahead to weekly data on U.S. jobless claims later in the session for indications on the strength of the economic recovery.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Wall Street investment bank Goldman Sachs said in a report Wednesday that it expects that “gold prices will decline into 2014 on the back of an acceleration in U.S. activity and a less accommodative monetary policy stance.”
The bank said it was maintaining its three- and six-month targets of USD1,300 an ounce. For 12 months, Goldman's target is USD1,175 an ounce.
The precious metal is on track to post a loss of nearly 20% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Gold prices came under additional pressure as the threat of U.S. military intervention in Syria appeared to diminish, denting the safe-haven appeal of the precious metal.
Instead, President Obama said that he will explore a plan proposed by Russia for Syria to place its chemical weapons under international control.
Elsewhere on the Comex, silver for December delivery tumbled 1.55% to trade at USD22.81 a troy ounce, while copper for December delivery fell 0.7% to trade at USD3.234 a pound.
Some technical selling also contributed to losses after prices fell through key support levels.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,345.70 a troy ounce during European morning hours, down 1.3%.
Gold fell by as much as 1.5% earlier to hit a session low of USD1,343.60 a troy ounce, the weakest level since August 15.
The December contract ended Tuesday’s session little changed at USD1,363.80 a troy ounce.
Futures were likely to find support at USD1,318.10 a troy ounce, the low from August 15 and resistance at USD1,387.10, the high from September 10.
Gold’s losses accelerated after prices broke below their 100-day moving average close to the USD1,356-level, triggering a flurry of automatic sell orders amid bearish chart signals.
Market players looked ahead to weekly data on U.S. jobless claims later in the session for indications on the strength of the economic recovery.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Wall Street investment bank Goldman Sachs said in a report Wednesday that it expects that “gold prices will decline into 2014 on the back of an acceleration in U.S. activity and a less accommodative monetary policy stance.”
The bank said it was maintaining its three- and six-month targets of USD1,300 an ounce. For 12 months, Goldman's target is USD1,175 an ounce.
The precious metal is on track to post a loss of nearly 20% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Gold prices came under additional pressure as the threat of U.S. military intervention in Syria appeared to diminish, denting the safe-haven appeal of the precious metal.
Instead, President Obama said that he will explore a plan proposed by Russia for Syria to place its chemical weapons under international control.
Elsewhere on the Comex, silver for December delivery tumbled 1.55% to trade at USD22.81 a troy ounce, while copper for December delivery fell 0.7% to trade at USD3.234 a pound.