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Gold falls slightly in Asia on profit-taking

Published 08/27/2013, 08:44 PM
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Investing.com - Gold futures traded lower in the early part of Wednesday’s Asian session as a small bout of profit-taking hit the yellow metal following an impressive showing on Tuesday.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery fell 0.26% to USD1,416.30 per troy ounce in Asian trading Wednesday. On Tuesday, the October contract settled higher by 1.94% at USD1,420 per ounce.

Gold futures were likely to find support at USD1,389.50 a troy ounce, Monday's low, and resistance at USD1,423.25, the high from June 6.

Gold’s status as a safe-haven play was reborn somewhat Tuesday due to another round of concerning economic news out of the U.S. and speculation Western powers are inching closer to armed agression against Syria.

Concerns that the U.S. may launch limited missile strikes against Syria for its alleged use of chemical weapons in its internal conflict steered investors away from the dollar on Tuesday.

U.S. Defense Secretary Chuck Hagel said earlier the military is ready to take action against Syria if called upon by the White House. Some market participants believe a missile strike against Syria could come as soon as Thursday.

In U.S. economic news out Tuesday, single family home prices in 20 U.S. metropolitan areas rose 0.9% in June after a 1% May increase, according to the S&P/Case-Shiller Home Price Index. Las Vegas and San Francisco led the gains, but 13 of 20 cities saw gains in prices slow on a month-over-month basis.

The Conference Board’s index of consumer sentiment rose to 81.5 this month from 81 in July. Economists expected a reading of 79. The Conference Board’s measure of economic expectations for the next six months rose to 88.7 from 86.

Elsewhere, Comex silver for December delivery slipped 0.55% to USD24.555 per ounce while copper for December delivery inched up 0.04% to USD3.333 an ounce.


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