Investing.com - Gold futures fell to a fresh three-month low on Tuesday, as optimism that U.S. lawmakers will reach an agreement to reopen the U.S. government and raise the debt ceiling ahead of Thursday’s deadline weighed on safe-haven assets.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,257.10 a troy ounce during U.S. morning trade, down 1.55%.
Comex gold prices fell by as much as 2% earlier in the session to hit USD1,251.10 a troy ounce, the lowest level since July 10.
The December contract ended 0.66% higher on Monday to settle at USD1,276.60 a troy ounce.
Gold futures were likely to find near-term support at USD1,242.35 a troy ounce, the low from July 10 and resistance at USD1,289.70, the previous session’s high.
The precious metal’s safe-haven appeal was dampened as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
A broadly stronger U.S. dollar also contributed to losses, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.45% to trade at 80.75, the strongest level since September 18.
Some technical selling also weighed after prices fell through key support levels close to the USD1,260-level, triggering a flurry of automatic sell orders amid bearish chary signals.
Elsewhere on the Comex, silver for December delivery plunged 3% to trade at USD20.71 a troy ounce, while copper for December delivery dipped 0.2% to trade at USD3.297 a pound.
Copper traders looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,257.10 a troy ounce during U.S. morning trade, down 1.55%.
Comex gold prices fell by as much as 2% earlier in the session to hit USD1,251.10 a troy ounce, the lowest level since July 10.
The December contract ended 0.66% higher on Monday to settle at USD1,276.60 a troy ounce.
Gold futures were likely to find near-term support at USD1,242.35 a troy ounce, the low from July 10 and resistance at USD1,289.70, the previous session’s high.
The precious metal’s safe-haven appeal was dampened as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
A broadly stronger U.S. dollar also contributed to losses, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.45% to trade at 80.75, the strongest level since September 18.
Some technical selling also weighed after prices fell through key support levels close to the USD1,260-level, triggering a flurry of automatic sell orders amid bearish chary signals.
Elsewhere on the Comex, silver for December delivery plunged 3% to trade at USD20.71 a troy ounce, while copper for December delivery dipped 0.2% to trade at USD3.297 a pound.
Copper traders looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.