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Gold supported by weak data points

Published 02/21/2013, 08:32 PM
Updated 02/21/2013, 08:33 PM
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Investing.com - Gold futures rose modestly in the early part of Friday’s Asian session after some concerning U.S. economic data points sent traders looking for safe-haven plays.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose 0.08% to USD1,579.90 per troy ounce in Asian trading Friday. Gold settled up 0.08% at USD1,579.20 a troy ounce in U.S. trading Thursday.

Gold futures were likely to test support USD1,546.35 a troy ounce, the low from June 1, 2012, and resistance at USD1,618.70, Monday's high.

Just days after traders were fretting about the Federal Reserve possibly winding down or bringing an end to its USD85 billion per month bond-buying program, data points show the central bank may not be able to halt quantitative easing anytime soon.

In U.S. economic news, the National Association of Realtors said existing home sales rose 0.4% in January to a seasonally adjusted annual rate of 4.92 million units. Analysts expected a 4.9 million-unit rate. The January 2013 rate is the second-highest since November 2009.

Initial claims for jobless benefits jumped by 20,000 to 362,000 last week, according to the Labor Department. The less volatile four-week moving average rose by 8,000 to 360,750.

The Labor Department said its consumer price index was unchanged in January after a flat reading in the prior month. Economists expected a modest January increase of 0.1%. The core index, which excludes food and energy prices, rose 0.3% last month, topping the 0.2% increase economists expected.

The small gains are just that, small and have not been enough to lift bullion noticeably above the seven-month lows it was found hovering near on Thursday. Indicating that investors’ appetite for the yellow metal may be waning, USD1 billion was pulled from the SPDR Gold Shares ETF last month and it is believed another $113 million has been pulled from the fund through February 13.

Elsewhere, Comex silver for March delivery rose 0.25% to USD28.770 per ounce while copper for March delivery jumped 0.61% to USD3.582 per ounce.


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