Investing.com - Gold futures swung between modest gains and losses during European morning trade on Monday, as investors remained focused on the outlook for Federal Reserve monetary policy following last Friday’s U.S. labor and manufacturing data.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,666.35 a troy ounce during European morning trade, down 0.25% on the day.
Prices traded in a range between USD1,665.95 a troy ounce, the daily low and a session high of USD1,673.95 a troy ounce.
Gold prices were likely to find support at USD1,653.35 a troy ounce, the low from January 28 and near-term resistance at USD1,685.35, the high from January 24.
The U.S. Department of Labor said the economy added 157,000 jobs in December, slightly below expectations for a 160,000 increase, while the unemployment rate ticked up to 7.9% for 7.8% in November.
However, November and December nonfarm payrolls figures were revised sharply higher to 247,000 and 196,000 respectively.
The data indicated the U.S. economy has maintained its momentum, but not so much as to alter the view that the Fed will remain accommodative.
The U.S. central bank said last week that it will continue its USD85 billion a month quantitative easing program “if the outlook for the labor market does not improve substantially.”
The Fed also reiterated that it will continue to hold interest rates close to zero until the unemployment rate falls below 6.5%.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Also Friday, a report showed that U.S. manufacturing activity improved to a nine-month high in January while consumer sentiment unexpectedly improved in January.
Elsewhere on the Comex, silver for March delivery fell 0.95% to trade at USD31.65 a troy ounce, while copper for March delivery dipped 0.35% to trade at USD3.771 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,666.35 a troy ounce during European morning trade, down 0.25% on the day.
Prices traded in a range between USD1,665.95 a troy ounce, the daily low and a session high of USD1,673.95 a troy ounce.
Gold prices were likely to find support at USD1,653.35 a troy ounce, the low from January 28 and near-term resistance at USD1,685.35, the high from January 24.
The U.S. Department of Labor said the economy added 157,000 jobs in December, slightly below expectations for a 160,000 increase, while the unemployment rate ticked up to 7.9% for 7.8% in November.
However, November and December nonfarm payrolls figures were revised sharply higher to 247,000 and 196,000 respectively.
The data indicated the U.S. economy has maintained its momentum, but not so much as to alter the view that the Fed will remain accommodative.
The U.S. central bank said last week that it will continue its USD85 billion a month quantitative easing program “if the outlook for the labor market does not improve substantially.”
The Fed also reiterated that it will continue to hold interest rates close to zero until the unemployment rate falls below 6.5%.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Also Friday, a report showed that U.S. manufacturing activity improved to a nine-month high in January while consumer sentiment unexpectedly improved in January.
Elsewhere on the Comex, silver for March delivery fell 0.95% to trade at USD31.65 a troy ounce, while copper for March delivery dipped 0.35% to trade at USD3.771 a pound.