Gold takes back earlier losses as market weighs Iran nuke accord
Published Nov 25, 2013 03:08PM ET
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,250.05 during U.S. afternoon hours, up 0.44%.
Gold prices hit a session low of USD1,227.45 a troy ounce and high of USD1,253.25 a troy ounce.
Gold futures were likely to find support at USD1,227.45 a troy ounce, the earlier low, and resistance at USD1,293.60, the high from Nov. 14.
The February contract settled up 0.02% at USD1,244.60 a troy ounce on Friday.
Gold prices plummeted earlier on reactions to Iran's decision to limit its nuclear ambitions, which sparked demand for the dollar.
Weekend talks among the U.S., Russia, China, Britain, Germany, France and Iran ended in agreement that halted advancements in Iran's nuclear program in exchange for easing economic sanctions against Tehran.
Under the terms of the agreement, Iran will stop enriching uranium beyond 5% and neutralize its stockpile of uranium enriched beyond that point.
Tehran will also grant more access to its facilities to nuclear inspectors in exchange for no new sanctions for six months.
Iran will also receive sanctions relief worth approximately USD7 billion in trade on oil, auto and airplane parts, gold and precious metals for six months.
Gold, however, rebounded on demand from bottom fishers, especially after soft economic data hit the wire.
In a report, the National Association of Realtors said its pending home sales index declined by a seasonally adjusted 0.6% in October, disappointing market expectations for a 1.3% gain.
Year-on-year, pending home sales fell at annualized rate of 2.2% last month, outpacing expectations for a 1% decline after rising 2% in September.
Soft U.S. economic indicators often boost gold prices by cementing expectations that the Federal Reserve will hold off on dismantling monetary stimulus programs such as monthly asset purchases until early 2014 as opposed to December as once anticipated.
Elsewhere on the Comex, silver for March delivery was up 0.92% at USD20.085 a troy ounce, while copper for March delivery was up 0.49% and trading at USD3.234 a pound.
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Written By: Investing.com
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