Investing.com - Gold futures soared in the early part of Monday’s session on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery jumped 1.59% to USD1,329.40 per ounce in Asian trading Monday. The December contract settled lower by 1.65% at USD1,308.60 per troy ounce on Friday.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
Elsewhere, Comex silver for December delivery soared 2.23% to USD22.205 per ounce while copper for December delivery inched down 0.01% to USD3.221 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery jumped 1.59% to USD1,329.40 per ounce in Asian trading Monday. The December contract settled lower by 1.65% at USD1,308.60 per troy ounce on Friday.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
Elsewhere, Comex silver for December delivery soared 2.23% to USD22.205 per ounce while copper for December delivery inched down 0.01% to USD3.221 per ounce.