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Gold prices inch lower on Fed taper concerns

Published 11/28/2013, 03:16 AM
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Investing.com - Gold prices inched lower in quiet trade on Thursday, amid ongoing expectations the Federal Reserve will begin unwinding its stimulus programs in the coming months.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,240.60 a troy ounce during European morning trade, down 0.1%.

Comex gold prices held in a tight range between USD1,234.70 a troy ounce and USD1,241.90 a troy ounce.

The February contract settled 0.29% lower on Wednesday to end at USD1,237.90 a troy ounce. Comex gold fell to a four-and-a-half-month low of USD1,226.40 a troy ounce earlier in the week.

Gold futures were likely to find support at USD1,226.40 a troy ounce, the low from November 25 and resistance at USD1,258.20, the high from November 26.

Gold prices were pressured on Wednesday after upbeat U.S. employment and consumer confidence data fuelled expectations the Fed will start to taper its stimulus program at one of its next few meetings.

Prices of the precious metal are down approximately 26% this year on concerns the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.

Elsewhere on the Comex, silver for March delivery fell 0.95% higher to trade at USD19.70 a troy ounce, while copper for March delivery was little changed to trade at USD3.190 a pound.

Trade volumes were expected to remain light on Thursday, with Comex floor trading scheduled to remain closed for the Thanksgiving Day holiday in the U.S. An abbreviated session was slated for Friday.

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