Investing.com - Gold futures fell to the lowest levels of the session on Tuesday, after stronger-than-expected U.S. service sector data fuelled speculation the Federal Reserve could begin to taper its stimulus program sooner than expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,306.80 a troy ounce during U.S. morning trade, down 0.6%.
Comex gold prices fell to a session low of USD1,305.80 a troy ounce immediately after the release of the upbeat ISM report.
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.
The Institute of Supply Management said in a report earlier that its non-manufacturing purchasing manager's index rose to 55.4 in October from a reading of 54.4 in September.
Analysts had expected the index to decline to 54.0 last month.
The upbeat data added to ongoing speculation that the Fed may start tapering its USD85-billion-a-month bond-buying program at its December meeting, after the central bank sounded more optimistic than anticipated in its assessment of the economy following its policy-setting meeting last week.
The U.S. dollar strengthened as the data fed speculation that a reduction in U.S. monetary stimulus is still possible by the end of the year.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.25% to trade at 80.86.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Market players now 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.
Market players 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.
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.
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 0.25% to trade at USD21.64 a troy ounce, while copper for December delivery inched down 0.1% to trade at USD3.250 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,306.80 a troy ounce during U.S. morning trade, down 0.6%.
Comex gold prices fell to a session low of USD1,305.80 a troy ounce immediately after the release of the upbeat ISM report.
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.
The Institute of Supply Management said in a report earlier that its non-manufacturing purchasing manager's index rose to 55.4 in October from a reading of 54.4 in September.
Analysts had expected the index to decline to 54.0 last month.
The upbeat data added to ongoing speculation that the Fed may start tapering its USD85-billion-a-month bond-buying program at its December meeting, after the central bank sounded more optimistic than anticipated in its assessment of the economy following its policy-setting meeting last week.
The U.S. dollar strengthened as the data fed speculation that a reduction in U.S. monetary stimulus is still possible by the end of the year.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.25% to trade at 80.86.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Market players now 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.
Market players 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.
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.
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 0.25% to trade at USD21.64 a troy ounce, while copper for December delivery inched down 0.1% to trade at USD3.250 a pound.