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Gold trades slightly lower; traders cautious ahead of Fed

Published 07/29/2013, 08:42 PM
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Investing.com - Gold futures traded modestly lower in the early part of Tuesday’s Asian session as traders appeared cautious ahead of the Federal Reserve’s Wednesday announcement on monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for September delivery fell 0.12% to USD1,328.05 per troy ounce in Asian trading Tuesday after up 0.58% at USD1,329.55 per ounce in U.S. trading Monday.

Gold futures were likely to find support at USD1,308.75 a troy ounce, Thursday's low, and resistance at USD1,340.15, Friday's high.

Gold futures up 8.6%, a rally aided in larger part by comments from Federal Reserve Chairman Ben Bernanke that the Fed’s monetary policy will remain easy for the foreseeable future. That rally has some market participants believing gold can continue higher.

Data from the U.S. Commodities Futures Trading Commission showed hedge funds and other money managers boosted their long bets on gold by 26% to almost 70,100 options and futures contracts for the week ending July 23.

Still, gold remains locked in a bear market and Goldman Sachs last week forecast lower prices. Last week, data from the International Monetary Fund showed central banks in Russia and Kazakhstan were among recent buyers of bullion.

Gold was supported a bit Monday due to more tepid U.S. economic news. In U.S. economic news out Monday, the National Association of Realtors said its Pending Homes Sales Index fell 0.4% to 110.9 in June and the May reading was revised lower to 111.3 from 112.3.

Elsewhere, Comex silver for September delivery fell 0.32% to USD19.800 per ounce while copper for September delivery declined 0.23% to USD3.101. On Monday evening, Chile, the world’s largest copper producer, lowered its 2013 GDP growth estimate due in part to slumping copper prices.


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