Investing.com - Gold futures were little changed during European morning hours on Monday, as investors stuck to the sidelines amid ongoing uncertainty over the timing of a pullback in the Federal Reserve’s stimulus program.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,387.40 a troy ounce during European morning hours, up 0.05%.
Gold traded in a range between USD1,385.30 a troy ounce, the daily low and a session high of USD1,393.80 a troy ounce. The December contract settled up 1% at USD1,386.50 a troy ounce on Friday.
Gold futures were likely to find support at USD1,356.00 a troy ounce, the low from August 22 and resistance at USD1,415.00, the high from September 4.
Uncertainty over whether the Fed will start tapering its USD85 billion-a-month asset purchase program later this month mounted after data showed that the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The disappointing data saw investors reassess expectations over the timing of a pullback in the Federal Reserve’s stimulus program.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Meanwhile, market players continued to monitor developments surrounding a possible U.S. military strike on Syria.
President Barack Obama will make his case for military strikes against Syria’s government for its alleged use of chemical weapons in a televised address on Tuesday.
U.S. lawmakers are scheduled to reconvene Monday after a five-week break to vote on taking military action against the Middle Eastern nation.
Russian President Vladimir Putin warned the U.S. against launching military action against the Syrian government without U.N. approval on Friday.
Speaking at a news conference following the Group of 20 summit in St Petersburg on Friday, Putin said Russia would "assist" Syria if the country is attacked.
Gold prices surged to a three-and-a-half month high of USD1,433.50 a troy ounce on August 28 as safe-haven buying picked up amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
Elsewhere on the Comex, silver for December delivery shed 0.4% to trade at USD23.80 a troy ounce, while copper for December delivery added 0.4% to trade at USD3.275 a pound.
The red metal gained following the release of upbeat Japanese and Chinese economic data.
The Chinese National Bureau of Statistics said earlier that consumer price inflation rose 2.6% in August, in line with expectations and slowing from 2.7% in July.
The inflation report came one day after data showed that China’s trade balance widened more-than-expected in August, easing concerns over a slowdown in the world’s second-largest economy.
Official trade data released on Sunday showed that China’s trade surplus widened to USD28.6 billion from a surplus of USD17.8 billion in July, compared to estimates for a surplus of USD20 billion.
Chinese exports rose 7.2% from a year earlier in August, beating expectations for a 6% increase and following a 5.1% gain in July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, in Japan, data showed that Japan’s economy grew by a seasonally adjusted 3.8%, well above the prior estimate of growth of 2.6%.
Sentiment was also boosted after Tokyo was chosen Saturday by the International Olympic Committee to host the 2020 Summer Olympics, beating Istanbul and Madrid.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,387.40 a troy ounce during European morning hours, up 0.05%.
Gold traded in a range between USD1,385.30 a troy ounce, the daily low and a session high of USD1,393.80 a troy ounce. The December contract settled up 1% at USD1,386.50 a troy ounce on Friday.
Gold futures were likely to find support at USD1,356.00 a troy ounce, the low from August 22 and resistance at USD1,415.00, the high from September 4.
Uncertainty over whether the Fed will start tapering its USD85 billion-a-month asset purchase program later this month mounted after data showed that the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The disappointing data saw investors reassess expectations over the timing of a pullback in the Federal Reserve’s stimulus program.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Meanwhile, market players continued to monitor developments surrounding a possible U.S. military strike on Syria.
President Barack Obama will make his case for military strikes against Syria’s government for its alleged use of chemical weapons in a televised address on Tuesday.
U.S. lawmakers are scheduled to reconvene Monday after a five-week break to vote on taking military action against the Middle Eastern nation.
Russian President Vladimir Putin warned the U.S. against launching military action against the Syrian government without U.N. approval on Friday.
Speaking at a news conference following the Group of 20 summit in St Petersburg on Friday, Putin said Russia would "assist" Syria if the country is attacked.
Gold prices surged to a three-and-a-half month high of USD1,433.50 a troy ounce on August 28 as safe-haven buying picked up amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
Elsewhere on the Comex, silver for December delivery shed 0.4% to trade at USD23.80 a troy ounce, while copper for December delivery added 0.4% to trade at USD3.275 a pound.
The red metal gained following the release of upbeat Japanese and Chinese economic data.
The Chinese National Bureau of Statistics said earlier that consumer price inflation rose 2.6% in August, in line with expectations and slowing from 2.7% in July.
The inflation report came one day after data showed that China’s trade balance widened more-than-expected in August, easing concerns over a slowdown in the world’s second-largest economy.
Official trade data released on Sunday showed that China’s trade surplus widened to USD28.6 billion from a surplus of USD17.8 billion in July, compared to estimates for a surplus of USD20 billion.
Chinese exports rose 7.2% from a year earlier in August, beating expectations for a 6% increase and following a 5.1% gain in July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, in Japan, data showed that Japan’s economy grew by a seasonally adjusted 3.8%, well above the prior estimate of growth of 2.6%.
Sentiment was also boosted after Tokyo was chosen Saturday by the International Olympic Committee to host the 2020 Summer Olympics, beating Istanbul and Madrid.