Gold prices dip in Asia with demand cues from Switzerland, holidays eyed
Published Nov 27, 2014 06:04PM ET
Gold prices dip in Asia
Investing.com - Gold prices eased in early Asian trade on Friday with investors focused on demand cues from Switzerland and year-end holiday sales.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,189.50 a troy ounce, down 0.06%.
Overnight, gold prices inched lower on Thursday, as trading conditions remained thin with markets in the U.S. closed for the Thanksgiving Day holiday
Trade volumes were expected to remain light on Thursday, with Comex floor trading scheduled to remain closed for Thanksgiving. An abbreviated session was slated for Friday.
Market players eyed an upcoming Swiss referendum on central bank gold reserves for more trading cues.
Swiss voters go to the polls on November 30 to decide whether the Swiss National Bank would have to hold at least 20% of its assets in the precious metal, up from 8% now.
The most-recent opinion poll released last week showed that support for the "Save our Swiss gold" proposal slipped to 38%, down from 44% in a survey conducted last month.
The motion, if passed, would likely boost gold prices from current levels.
Gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Silver futures for March rose 0.07% to trade at $16.267 a troy ounce.
Copper futures for March delivery shed 0.19% to trade at $2.947 a pound.
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Written By: Investing.com
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