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Gold Firms After 2-Week Slide; Fears Of Fed Taper Linger

ByICN.com
Published 11/11/2013, 04:23 AM
Updated 07/09/2023, 06:31 AM
GC
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Gold prices stood near three-week low early Monday, as traders weighed Friday's strong U.S. jobs growth amid lingering fears the Federal Reserve would start withdrawing its stimulus program.

Bullion markets fell the most in a month on Friday after the world`s largest economy unexpectedly posted strong non-farm payroll number, renewing fears the Fed could being tapering its bond purchasing program sooner and hurt gold prices, which eased below $1,300 mark for the past three days as the dollar strengthened amid prospects for an economic recovery in the U.S.

Spot Gold was down 0.09% at $1,287.30 an ounce as of 02:35 ET, compared with the previous close at $1,288.50. The day's range is so far between $1,283.57 and $1,288.86.

Today's session is somewhat light as the U.S. celebrates the Veteran's Day. But, the stock market is open, thus gold prices are consolidating now after a two-week slide.

Gold was also pressured on Thursday after data revealed that U.S. gross domestic product grew more than expected in the second quarter sparked a rally for the dollar. Gold and the U.S. currency trade inversely with one another.

Strong data from the world`s largest economy usually fuels concerns the Fed could announce plans to scale back its $85 billion-a-month stimulus program as soon as December, when the Federal Open Market Committee (FOMC) meets for the final time this year.

Technically, gold has decisively broken beow $1,306.00 support level, with prices ettling 61.8 retracement level for the latest bullish wave. Accoridingly, the bearish bias will probably remin dominant this week, eyeing $1,275, $1,265 as th next downside targets.

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