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Gold trades lower as traders lock in profits

Published 10/14/2013, 09:17 PM
Updated 10/14/2013, 09:18 PM
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Investing.com - Gold futures traded lower during Tuesday’s Asian session on what appears to be a case of some profit-taking after the yellow metal posted a decent performance on Monday.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.63% to USD1,268.50 per troy ounce in Asian trading Tuesday. The December contract settled higher by 0.66% at USD1,276.60 per ounce on Monday.

Gold futures were likely to find support at USD1,262.60 a troy ounce, Friday's low, and resistance at USD1,330.10, Tuesday's high.

Traders are still focusing on Capitol Hill for signs of a budget deal that would reopen the U.S. government and possibly help avert a debt ceiling crisis.

The government in the world’s largest economy is the midst of its first shutdown since the 1990s and fears are high the shutdown will not end before October 17, the day the debt ceiling must be extended or the U.S. risks its first ever sovereign debt default.

On Monday evening in the U.S., senators gave some indication that an agreement to reopen the government will be announced Tuesday and that could also be pressuring gold.

Still, gold has not acted as much of a safe-haven at a time when investors, in theory, should be treating the yellow metal as a point of refuge. Gold is still hovering near three-month lows and is still saddled with a year-to-date loss in excess of 20%.

Elsewhere, Comex silver for December delivery fell 0.66% to USD21.212 per ounce. Silver is in the midst of a six-day losing streak. Copper for December delivery inched down 0.02% to USD3.299 per ounce.


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