Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Gold prices plunge to lowest since July on Fed stimulus outlook

Published 12/04/2013, 03:27 AM
GC
-
HG
-
SI
-
Investing.com - Gold prices tumbled to the lowest level since July on Wednesday, as sentiment on the precious metal remained bearish amid mounting concerns the Federal Reserve will start tapering its bond-buying program at one of its next few meetings.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,212.60 a troy ounce during European morning trade, down 0.65%.

Comex gold prices fell to a session low of USD1,211.90 a troy ounce earlier, the weakest level since July 5.

The February contract settled 0.09% lower on Tuesday to end at USD1,220.80 a troy ounce.

Gold futures were likely to find support at USD1,207.25 a troy ounce, the low from July 5 and resistance at USD1,225.80, the high from December 3.

Investors looked ahead to key U.S. economic data later in the week to further gauge the strength of the economy and the need for stimulus.

Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on new home sales and the trade balance. In addition, the Institute of Supply Management was to release its services PMI.

The U.S. is also set to release data on third quarter gross domestic product on Thursday, while November’s highly-anticipated nonfarm payrolls report is scheduled for Friday.

The Federal Reserve, which holds its next meeting on December 17-18, has said the timing of its tapering depends on the health of the labor and housing markets.

Gold is down approximately 28% this year, heading for the first annual loss in 13 years, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.

Elsewhere on the Comex, silver for March delivery fell 0.6% to trade at USD18.94 a troy ounce, while copper for March delivery inched up 0.35% to trade at USD3.179 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.