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Gold futures edge lower, eyes on U.S. jobs data

Published 11/05/2013, 03:21 AM
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Investing.com - Gold futures edged lower on Tuesday, as investors eyed the release of key U.S. jobs data later in the week for further indications on whether the Federal Reserve could begin tapering its stimulus program sooner than expected.

Gold prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,311.50 a troy ounce during European morning trade, down 0.2%.

Prices held in a tight range between USD1,310.50 a troy ounce, the daily low and a session high of USD1,318.10 a troy ounce. The December contract ended 0.11% higher on Monday to settle at USD1,314.70 a troy ounce.

Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,327.30, the high from November 1.

Market players looked ahead to the release of key U.S. economic data later in the week to help assess the timing for a reduction in the Fed’s bond-purchasing program.

The U.S. is set to release preliminary data on third quarter economic growth on Thursday, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.

The central bank sounded more optimistic than anticipated in its assessment of the economy following its policy-setting meeting last week, sparking speculation the Fed could start tapering stimulus at its December meeting.

Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.

Investors will also be awaiting the outcome of Thursday’s European Central Bank policy meeting, amid growing expectations that the central bank will cut rates in order to safeguard the economic recovery in the region.

Elsewhere on the Comex, silver for December delivery shed 0.35% to trade at USD21.62 a troy ounce, while copper for December delivery inched up 0.1% to trade at USD3.257 a pound.

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