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Gold falls slightly in Asia after jumping in U.S.

Published 04/22/2013, 08:36 PM
Updated 04/22/2013, 08:37 PM
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Investing.com - Gold futures are taking a small breather in the early part of Tuesday’s Asian session after the yellow metal ripped higher Monday in the U.S. to extend its winning streak to five days.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.09% to USD1,419.95 per troy ounce in Asian trading Tuesday after settling up 1.94% at USD1,422.65 a troy ounce in U.S. trading on Monday.

Gold futures were likely to test support USD1,403.55 a troy ounce, the earlier low, and resistance at USD1,590.05, the high from April 9.

Gold got a lift Monday in the U.S. amid some safe-haven buying following a concerning real estate data point. In U.S. economic news, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis.

Risk appetite was limited as Caterpillar, the world’s largest maker of construction and mining equipment, slashed its 2013 earnings and revenue guidance, underscoring the notion that the global economic recovery is still fragile.

Gold prices have dropped in recent months amid concerns that a more robust recovery in the U.S. will prompt the Federal Reserve to soon wind down stimulus tools, which weaken the dollar to spur investing and recovery.

Gold is also getting a lift from some increased physical buying. The U.S. Mint has sold 167,500 ounces of gold coins thus far in April, nearly triple the amount it sold all of last month.

Elsewhere, Comex silver for May delivery fell 0.56% to USD23.193 per ounce while copper for May delivery dropped 0.43% to USD3.118 per ounce.


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