Gold futures up slightly ahead of Fed meeting
Published Jun 17, 2013 08:25PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched up 0.03% to USD1,383.45 per troy ounce in Asian trading Tuesday after settling down 0.32% at USD1,383.15 a troy ounce in U.S. trading on Monday.
Gold futures were likely to test support USD1,366.25 a troy ounce, Tuesday's low, and resistance at USD1,394.25, Thursday's high.
In U.S. economic news out Monday, the New York Federal Reserve said its Empire State general business conditions index fell to 3.05 in April from 9.24 in March. Economists expected a drop to 7. New orders dropped to 2.20 from 8.18.
The National Association of Home Builders/Wells Fargo builder sentiment index for June jumped to 52 from 44 last month. That was the biggest monthly increase since 2002. Readings above 50 are considered positive. Sales of new homes in the U.S. have risen 29% this year.
Helped by those data points and a decent start to the week by Asian stocks, U.S. equities surged Monday and that chased investors out of safe-haven plays such as gold.
Traders will now focus on the two-day Fed meeting, which kicks off later today. It is doubtful that the Fed will announce any new stimulus measures and most traders have tapering on their minds. Even if the Fed does announce tapering of its USD85 billion per month asset-buying program, it will probably not be a significant amount.
Still, news to that effect could boost the dollar while punishing gold.
Elsewhere, Comex silver for July delivery rose 0.46% to USD21.858 per ounce while copper for July delivery rose 0.68% to USD3.215 per ounce.
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Written By: Investing.com
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