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Gold slips lower on strengthening greenback

Published 09/28/2012, 07:31 AM
Updated 09/28/2012, 07:33 AM
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Investing.com - Gold futures slipped lower in late European trade Friday as a strengthening greenback pressured the commodity while traders anticipate U.S. economic numbers. 

On the Comex division of the New York Mercantile Exchange, Gold futures for December delivery traded at USD1780.15 a troy ounce slipping 0.01%.

It earlier traded at a session high USD1784.65 a troy ounce. Gold was likely to find support at USD1739.35 and resistance at USD1784.65.

Meanwhile, investors anticipated the release of U.S. economic numbers, with hopes that an economic recovery may boost precious metal demand.

On Thursday, government data revealed that the U.S. economy expanded 1.3% in the second quarter, down from a preliminary estimate of 1.7%. Economists had expected the rate of growth to remain unchanged.

A separate report showed that U.S. durable goods orders fell 13.2% in August, the steepest decline since January 2009, compared to expectations for a 5.0% decline.

Another report showed that the number of people who filed for unemployment assistance in the U.S. last week fell to 359,000 from 385,000, compared to expectations for a decrease to 378,000. 

Meanwhile, the Spanish government announced a crisis budget for 2013, based mostly on spending cuts, in what many analysts see as an effort to pre-empt the likely conditions of an international bailout. 

Ministry budgets were slashed by 8.9% for next year and public sector wages frozen for a third year as Prime Minister Mariano Rajoy battles to trim one of the euro zone's biggest deficits. 

US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, traded lower by 0.01% to USD79.61.

. Dollar strength usually pressures gold, as it lessens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere on the Comex, Silver for December delivery rose 0.23% to trade at USD34.745 a troy ounce while Copper for December delivery rose 0.23% to trade at USD3.755 a pound.



 

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