Investing.com - Gold futures were down for the eighth straight day on Monday, as investors looked ahead to Wednesday’s Federal Reserve minutes for further hints regarding the central bank’s monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,351.05 a troy ounce during U.S. morning hours, down 1% on the day.
Comex gold prices fell by as much as 2% earlier in the session to hit a daily low of USD1,337.75 a troy ounce, the weakest level since April 18.
Gold futures were likely to find near-term support at USD1,323.00 a troy ounce, the low from April 16 and resistance at USD1,391.25, the high from May 17.
Gold prices dropped sharply during the Asian trading session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Sentiment on the precious metal was expected to remain bearish after data showed investors held 74,432 short contracts on gold, the highest level since June 2006.
Elsewhere on the Comex, silver for July delivery fell 3.7% to trade at USD21.52 a troy ounce.
Silver futures were down by as much as 9.5% earlier in the session to hit a daily low of USD20.21 a troy ounce, the weakest level since September 14, 2010.
According to some market participants, silver’s plunge was triggered by a sudden move higher in the yen during early Asian trading hours.
The yen found support after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.
The move lower in USD/JPY prompted a major investor to liquidate a major stake in silver futures to cover positions on the yen.
Market talk of an unidentified investor selling off a big chunk of silver holdings during illiquid early Asian hours also weighed and likely exacerbated the sharp move lower.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,351.05 a troy ounce during U.S. morning hours, down 1% on the day.
Comex gold prices fell by as much as 2% earlier in the session to hit a daily low of USD1,337.75 a troy ounce, the weakest level since April 18.
Gold futures were likely to find near-term support at USD1,323.00 a troy ounce, the low from April 16 and resistance at USD1,391.25, the high from May 17.
Gold prices dropped sharply during the Asian trading session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Sentiment on the precious metal was expected to remain bearish after data showed investors held 74,432 short contracts on gold, the highest level since June 2006.
Elsewhere on the Comex, silver for July delivery fell 3.7% to trade at USD21.52 a troy ounce.
Silver futures were down by as much as 9.5% earlier in the session to hit a daily low of USD20.21 a troy ounce, the weakest level since September 14, 2010.
According to some market participants, silver’s plunge was triggered by a sudden move higher in the yen during early Asian trading hours.
The yen found support after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.
The move lower in USD/JPY prompted a major investor to liquidate a major stake in silver futures to cover positions on the yen.
Market talk of an unidentified investor selling off a big chunk of silver holdings during illiquid early Asian hours also weighed and likely exacerbated the sharp move lower.