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Gold down on profit-taking

Published 10/17/2013, 09:18 PM
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Investing.com - Gold futures traded lower during Friday’s Asian session as traders took profits in the yellow metal following an impressive showing Thursday.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded lower by 0.35% to USD1,318.40 per troy ounce in Asian trading Friday. The December contract settled higher by 3.17% at USD1,323.00 per ounce on Thursday.

Gold futures were likely to find support at USD1,251.10 a troy ounce, Tuesday's low, and resistance at USD1,330.10, the high from Oct. 8.

Gold soared Thursday on bets that with the U.S. government reopen and the debt ceiling crisis averted, the Federal Reserve’s ultra-loose monetary policy will stay in place for the foreseeable future.

The thinking there is that because the U.S. government was closed for more than two weeks, fourth-quarter economic output will be hampered with no means for the world’s largest economy to recapture that lost growth.

The Fed has previously pledged to keep its easing program in place until the U.S. economy shows sufficient strength. The central has also said its time line for tapering is not tied to a calendar, but rather economic data.

Meanwhile, the U.S. Department of Labor said Thursday the number of individuals filing for initial jobless benefits last week declined by 15,000 to a seasonally adjusted 358,000 from a downwardly revised 373,000 in the preceding week.

Analysts had expected U.S. jobless claims to decline to 335,000 last week. A separate report showed that the Philly Fed manufacturing index ticked down to 19.8 from 22.3 in September, but came in above expectations for a reading of 15.0.

Elsewhere, Comex silver for December delivery slipped 0.51% to USD21.835 per ounce while copper for December delivery lost 0.27% to USD3.297 an ounce.


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