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Gold, silver futures decline ahead of Fed speakers

Published 11/18/2013, 09:08 AM
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Investing.com - Gold and silver futures were lower on Monday, as traders looked ahead to speeches from three Federal Reserve officials later in the day for further indications on the future course of U.S. monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,282.60 a troy ounce during U.S. morning trade, down 0.4%.

Comex gold prices fell to a session low of USD1,276.90 a troy ounce earlier, the weakest level since November 13.

The December contract ended 0.09% higher on Friday to settle at USD1,287.40 a troy ounce.

Gold futures were likely to find support at USD1,265.00 a troy ounce, the low from November 13 and resistance at USD1,313.30, the high from November 8.

New York Fed President William Dudley will speak in Queens, New York at 12:15 p.m. Eastern.

Philadelphia Fed President Charles Plosser will speak on the economic outlook in Philadelphia at 1:30 p.m., while Minneapolis Fed President Narayana Kocherlakota will speak in Minneapolis at 7:45 p.m.

Investors are also turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

Gold prices are down approximately 24% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchases.

Elsewhere on the Comex, silver for December delivery shed 0.45% to trade at USD20.63 a troy ounce, while copper for December delivery inched up 0.15% to trade at USD3.176 a pound.

Prices of the industrial metal remained supported after China released a reform plan that called for opening the financial sector to more foreign investment and a revamp of initial public offerings, particularly for state-owned companies.

The document came after the Chinese Communist Party leadership ended a meeting on Tuesday last week with only abroad outline of reform plans.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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