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Gold dips as markets brace for latest Federal Reserve decision

Published 01/28/2013, 01:31 PM
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Investing.com - Gold prices fell on Monday as investors avoided the yellow metal prior to the Federal Reserve's Wednesday decision on monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.23% at USD1,655.05 a troy ounce in U.S. trading on Monday, up from a session low of USD1,653.35 and down from a high of USD1,663.65 a troy ounce.

Gold futures were likely to test support USD1,643.25 a troy ounce, the low from Jan. 07, and resistance at USD1,695.85, Tuesday's high.

The Fed will conclude a meeting on monetary policy on Wednesday, and investors will remain eager to see if the U.S. central bank alters its monthly USD85 billion quantitative easing program.

U.S. indicators have improved in recent months, while recent Federal Reserve language has many market participants expecting monetary authorities to soon focus on when it should consider winding down stimulus measures.

In the U.S. earlier, the Commerce Department reported earlier total durable goods orders, which include transportation items, jumped by 4.6% in December, beating expectations for a 1.8% gain.

The U.S. government added that orders for core durable goods, which are stripped of volatile transportation items, rose 1.3% in December, outpacing analysts' calls for a 0.7% increase.

The data offset a report revealing falling pending home sales, which tumbled unexpectedly in December.

In a report, the National Association of Realtors said its pending home sales index fell by 4.3% in December, defying expectations for a 0.3% gain.

Pending home sales in November were revised to a 1.6% gain from a previously reported 1.7% increase.

Year-on-year, pending home sales rose at annualized rate of 4.9% last month, below expectations for an 11.5% increase, after rising 8.8% in November.

Meanwhile on the Comex, silver for March delivery was down 1.31% and trading at USD30.798 a troy ounce, while copper for March delivery was up 0.12% and trading at USD3.656 a pound.








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