Investing.com - Gold prices fell to 6-month lows on Friday after Federal Reserve Chairman Ben Bernanke said the U.S. economy was improving, which sent gold prices falling and the dollar rising amid talk that monetary stimulus measures may wind down soon.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 1.78% at USD1,606.45 a troy ounce in U.S. trading on Friday, up from a session low of USD1,598.25 and down from a high of USD1,635.95 a troy ounce.
Gold futures were likely to test support USD1,590.25 a troy ounce, the low from Aug. 15, 2012, and resistance at USD1,635.95, the earlier high.
Bernanke told a G20 meeting of finance ministers and central bankers earlier that while unemployment rates remain high in the U.S., the economy is improving and will help bring the global economy up with it.
The news sent gold falling on sentiment the Fed may be closer to considering winding down its USD85 billion monthly bond-buying program, a monetary stimulus tool that weakens the dollar to spur recovery and job demand.
Gold and the dollar normally trade inversely from one another.
Weak output data fueled safe-haven dollar demand as well, which came at gold's expense.
Official data showed that U.S. industrial production contracted by 0.1% in January, missing expectations for a 0.2% rise and well below a 0.4% increase the previous month.
Meanwhile on the Comex, silver for March delivery was down 1.84% and trading at USD29.795 a troy ounce, while copper for March delivery was up 0.01% and trading at USD3.738 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 1.78% at USD1,606.45 a troy ounce in U.S. trading on Friday, up from a session low of USD1,598.25 and down from a high of USD1,635.95 a troy ounce.
Gold futures were likely to test support USD1,590.25 a troy ounce, the low from Aug. 15, 2012, and resistance at USD1,635.95, the earlier high.
Bernanke told a G20 meeting of finance ministers and central bankers earlier that while unemployment rates remain high in the U.S., the economy is improving and will help bring the global economy up with it.
The news sent gold falling on sentiment the Fed may be closer to considering winding down its USD85 billion monthly bond-buying program, a monetary stimulus tool that weakens the dollar to spur recovery and job demand.
Gold and the dollar normally trade inversely from one another.
Weak output data fueled safe-haven dollar demand as well, which came at gold's expense.
Official data showed that U.S. industrial production contracted by 0.1% in January, missing expectations for a 0.2% rise and well below a 0.4% increase the previous month.
Meanwhile on the Comex, silver for March delivery was down 1.84% and trading at USD29.795 a troy ounce, while copper for March delivery was up 0.01% and trading at USD3.738 a pound.