Investing.com - Gold prices were little changed near the USD1,200-level on Monday, as concerns over the impact of last week’s decision by the Federal Reserve to begin tapering its stimulus program continued to weigh.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,202.40 a troy ounce during European morning trade, down 0.1%. Gold prices held in a range between USD1,199.40 a troy ounce and USD1,204.90 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19. The February contract settled 0.85% higher on Friday to end at USD1,203.70 a troy ounce.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
The Commerce Department said Friday that the U.S. economy expanded by 4.1% in the third quarter, well above initial estimates for 3.6% growth, adding to signs that the economic recovery is deepening.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery dipped 0.3% to trade at USD19.39 a troy ounce, while copper futures for March delivery inched down 0.05% to trade at USD3.306 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,202.40 a troy ounce during European morning trade, down 0.1%. Gold prices held in a range between USD1,199.40 a troy ounce and USD1,204.90 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19. The February contract settled 0.85% higher on Friday to end at USD1,203.70 a troy ounce.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
The Commerce Department said Friday that the U.S. economy expanded by 4.1% in the third quarter, well above initial estimates for 3.6% growth, adding to signs that the economic recovery is deepening.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery dipped 0.3% to trade at USD19.39 a troy ounce, while copper futures for March delivery inched down 0.05% to trade at USD3.306 a pound.