Gold prices fall in Asia on concerns of continuing U.S. stimulus

Investing.com - Gold prices fell in Asia on Friday on concerns that the Federal Reserve will continue winding down stimulus measures in 2014, and despite the fact that weaker U.S. stocks channeled money into precious metals.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,224.50 a troy ounce, down 0.06%. Gold prices overnight traded in a range between USD1,211.40 a troy ounce and USD1,225.50 a troy ounce.

Futures were likely to find near-term support at USD1,181.90 a troy ounce and resistance at USD1,251.40, the high from Dec. 16.

Investors expected gains to be short lived as data released earlier kept expectations strong the Federal Reserve will continue to taper its USD75 billion in monthly asset purchases as the year progresses.

The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.

Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease.

The Institute for Supply Management reported that its purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.

The Fed has said it will pay close attention to data when deciding on the fate of monetary stimulus programs.

Past and present rounds of asset purchases rolled out since the 2008 financial crisis of bolstered gold ever since.

Gold prices fell about 29% in 2013 amid growing expectations that the Federal Reserve will taper its bond purchases in 2014 and possibly end the program later this year.

Elsewhere on the Comex, silver futures for March delivery rose 0.01% to trade at USD20.023 a pound, while copper for March delivery was flat at 3.386.