Investing.com - Gold prices fell in Asian trading on Tuesday, cooling multi-session gains stemming from the Federal Reserve's plans to stimulate the U.S. economy with a third round of quantitative easing measures, which weaken the dollar, gold's traditional hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.58% at USD1,757.75 a troy ounce, up from a session low of USD1,756.95 and down from a high of USD1,761.65 a troy ounce early during the session.
Gold futures were likely to test support at USD1,753.75 a troy ounce, Monday's low, and resistance at USD1,772.15, Thursday's high.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the U.S. economy improves, a policy measure known as quantitative easing.
Monetary stimulus tools in the U.S. weaken the dollar to spur recovery, quantitative easing especially, sending gold climbing, in this case, hitting highs not seen since February of this year.
Investors, however, felt the metal had gained enough and sold for profits, especially on news the dollar was rising against the euro.
Eurozone policymakers recently made EUR100 billion available for Spain to rescue its banking sector and assist regional governments, yet concerns resurfaced earlier that Madrid may seek sovereign rescue funding, which sent the greenback rising against the single currency.
Reuters reports that Spanish Prime Minister Mariano Rajoy is set to unveil new economic reforms later this month including austerity measures further pressured the euro lower against the U.S. dollar.
Elsewhere in Europe, the ECB reported the currency zone's current account surplus narrowed to EUR9.7 billion in July from EUR14.3 billion in June.
Analysts had expected the continent's current account surplus to narrow to EUR10 billion in July.
A separate report showed that the eurozone's trade surplus narrowed unexpectedly to EUR7.9 billion in July from EUR9.3 billion the previous month.
Elsewhere on the Comex, silver for December delivery was down 0.46% and trading at USD34.210 a troy ounce, while copper for December delivery was up 0.25% and trading at USD3.764 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.58% at USD1,757.75 a troy ounce, up from a session low of USD1,756.95 and down from a high of USD1,761.65 a troy ounce early during the session.
Gold futures were likely to test support at USD1,753.75 a troy ounce, Monday's low, and resistance at USD1,772.15, Thursday's high.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the U.S. economy improves, a policy measure known as quantitative easing.
Monetary stimulus tools in the U.S. weaken the dollar to spur recovery, quantitative easing especially, sending gold climbing, in this case, hitting highs not seen since February of this year.
Investors, however, felt the metal had gained enough and sold for profits, especially on news the dollar was rising against the euro.
Eurozone policymakers recently made EUR100 billion available for Spain to rescue its banking sector and assist regional governments, yet concerns resurfaced earlier that Madrid may seek sovereign rescue funding, which sent the greenback rising against the single currency.
Reuters reports that Spanish Prime Minister Mariano Rajoy is set to unveil new economic reforms later this month including austerity measures further pressured the euro lower against the U.S. dollar.
Elsewhere in Europe, the ECB reported the currency zone's current account surplus narrowed to EUR9.7 billion in July from EUR14.3 billion in June.
Analysts had expected the continent's current account surplus to narrow to EUR10 billion in July.
A separate report showed that the eurozone's trade surplus narrowed unexpectedly to EUR7.9 billion in July from EUR9.3 billion the previous month.
Elsewhere on the Comex, silver for December delivery was down 0.46% and trading at USD34.210 a troy ounce, while copper for December delivery was up 0.25% and trading at USD3.764 a pound.