Gold inches up amid bargain hunting after Fed-fueled selloff
Published Jun 21, 2013 12:11PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.48% at USD1,292.35 a troy ounce in U.S. trading on Friday, up from a session low of USD1,268.75 and down from a high of USD1,301.75 a troy ounce.
Gold futures were likely to find support at USD1,268.75 a troy ounce, the earlier low, and resistance at USD1,391.35, Monday's high.
Gold prices fell after Federal Reserve Chairman Ben Bernanke said Wednesday that monetary stimulus measures may taper this year and possibly end next year if the economy improves, though by Thursday, prices took a sharp nose dive after better-than-expected U.S. data confirmed expectations that Fed stimulus programs will begin winding down in the coming months.
Stimulus programs such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, which makes gold an attractive hedge, though talk of their dismantling sends the dollar rising and gold falling.
The Federal Reserve Bank of Philadelphia said earlier that its manufacturing index rose to 12.5 in June from -5.2 in May, well above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2% to 5.18 million units in May from April’s total of 4.97 million, far surpassing market calls for a 0.6% increase.
Comex gold prices fell by as much as 6.5% on Thursday though bargain hunters viewed the commodity as oversold on Friday and took up positions in the metal and stabilized prices.
Elsewhere on the Comex, silver for July delivery was up 0.25% at USD19.873 a troy ounce, while copper for July delivery was up 0.47% and trading at USD3.077 a pound.
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Written By: Investing.com
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