Investing.com - Gold futures traded near a three-month low on Tuesday, as hopes for a breakthrough in the Washington impasse weighed on assets viewed as safe havens.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,271.20 a troy ounce, down 0.4%.
Prices traded in range between USD1,266.10 a troy ounce, the daily low and a session high of USD1,275.70 a troy ounce. Comex gold prices fell to USD1,259.60 on October 11, the weakest level since July 10.
The December contract ended 0.66% higher on Monday to settle at USD1,276.60 a troy ounce.
Gold futures were likely to find near-term support at USD1,262.60 a troy ounce, the low from October 11 and resistance at USD1,311.80, the high from October 10.
The precious metal’s safe-haven appeal was dampened as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Elsewhere on the Comex, silver for December delivery fell 1.05% to trade at USD21.13 a troy ounce, while copper for December delivery was little changed to trade at USD3.302 a pound.
Copper traders looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,271.20 a troy ounce, down 0.4%.
Prices traded in range between USD1,266.10 a troy ounce, the daily low and a session high of USD1,275.70 a troy ounce. Comex gold prices fell to USD1,259.60 on October 11, the weakest level since July 10.
The December contract ended 0.66% higher on Monday to settle at USD1,276.60 a troy ounce.
Gold futures were likely to find near-term support at USD1,262.60 a troy ounce, the low from October 11 and resistance at USD1,311.80, the high from October 10.
The precious metal’s safe-haven appeal was dampened as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Elsewhere on the Comex, silver for December delivery fell 1.05% to trade at USD21.13 a troy ounce, while copper for December delivery was little changed to trade at USD3.302 a pound.
Copper traders looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.