Investing.com - Gold prices were up sharply on the first trading day of 2014 on Thursday, holding on to strong gains after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected.
Trading volumes are expected to remain light on Thursday due to the holiday period, reducing liquidity in the market and increasing volatility, which can help exaggerate market moves.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,221.20 a troy ounce during U.S. morning trade, up 1.6%. Gold prices rose by as much as 2.1% earlier in the day to hit a session high of USD1,228.10 a troy ounce, the strongest level since December 18.
Futures were likely to find support at USD1,181.40 a troy ounce, the low from December 31 and resistance at USD1,243.90, the high from December 18. There was no floor or electronic trading on Wednesday because of the New Year’s Day holiday.
The U.S. Department of Labor said in a report earlier that the number of individuals filing for initial jobless benefits declined by 2,000 to a seasonally adjusted 339,000 last week. Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 from the previous week’s revised total of 341,000.
Gold prices ended 2013 with a loss of nearly 29%, its first annual decline since 2000 and the worst in 32 years, as solid U.S. economic data underlined expectations the Federal Reserve will begin curbing stimulus.
The U.S. central bank will reduce its bond-buying stimulus program by USD10 billion a month starting in January.
Some market participants believe the Fed will likely taper its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Meanwhile, silver for March delivery rallied by as much as 5.2% earlier in the session to hit USD20.43 a troy ounce, before moving off the highs to trade at USD20.12, up 3.9%. Comex silver prices lost nearly 36.5% in 2013, making it one of the worst performing commodities of the year.
Elsewhere on the Comex, copper futures for March delivery dipped 0.1% to trade at USD3.393 a pound.
Copper traders digested a pair of disappointing reports on the Chinese manufacturing sector. Data released earlier showed that China’s final HSBC Purchasing Managers Index inched down to 50.5 in December from a reading of 50.8 in November.
The report was published one day after a government report showed that China’s manufacturing purchasing managers' index fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Trading volumes are expected to remain light on Thursday due to the holiday period, reducing liquidity in the market and increasing volatility, which can help exaggerate market moves.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,221.20 a troy ounce during U.S. morning trade, up 1.6%. Gold prices rose by as much as 2.1% earlier in the day to hit a session high of USD1,228.10 a troy ounce, the strongest level since December 18.
Futures were likely to find support at USD1,181.40 a troy ounce, the low from December 31 and resistance at USD1,243.90, the high from December 18. There was no floor or electronic trading on Wednesday because of the New Year’s Day holiday.
The U.S. Department of Labor said in a report earlier that the number of individuals filing for initial jobless benefits declined by 2,000 to a seasonally adjusted 339,000 last week. Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 from the previous week’s revised total of 341,000.
Gold prices ended 2013 with a loss of nearly 29%, its first annual decline since 2000 and the worst in 32 years, as solid U.S. economic data underlined expectations the Federal Reserve will begin curbing stimulus.
The U.S. central bank will reduce its bond-buying stimulus program by USD10 billion a month starting in January.
Some market participants believe the Fed will likely taper its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Meanwhile, silver for March delivery rallied by as much as 5.2% earlier in the session to hit USD20.43 a troy ounce, before moving off the highs to trade at USD20.12, up 3.9%. Comex silver prices lost nearly 36.5% in 2013, making it one of the worst performing commodities of the year.
Elsewhere on the Comex, copper futures for March delivery dipped 0.1% to trade at USD3.393 a pound.
Copper traders digested a pair of disappointing reports on the Chinese manufacturing sector. Data released earlier showed that China’s final HSBC Purchasing Managers Index inched down to 50.5 in December from a reading of 50.8 in November.
The report was published one day after a government report showed that China’s manufacturing purchasing managers' index fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.