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Gold at six week highs on Fed tapering view

Published 10/28/2013, 11:09 AM
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Investing.com - Gold prices rose to six-week highs on Monday as expectations that the Federal Reserve will continue its stimulus program into the first quarter of next year continued to weigh on the dollar.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,360.50 a troy ounce during U.S. morning trade, up 0.59%.

Prices traded in range between USD1,346.30 a troy ounce, the daily low and a session high of USD1,361.70 a troy ounce.

The December contract rose to USD1,356.40 on Friday, the strongest level since September 20, before closing at USD1,352.50, up 0.16%.

Gold futures were likely to find support at USD1,310.10 a troy ounce, the low from October 22 and near-term resistance at USD1,366.50, the high from September 20.

The central bank is scheduled to begin its two-day policy-meeting on October 29 to review the economy and assess policy. Market analysts expect the Fed to keep its USD 85 billion-a-month asset purchase program on track.

U.S. data releases will also be in focus in the week ahead, with reports on retail sales, inflation figures and private-sector jobs growth all on tap.
Gold prices have largely tracked shifting expectations on the timing of a possible reduction to the Fed’s stimulus program.

Data released on Monday showed that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months.

However, a separate report showed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month.

Elsewhere on the Comex, silver for December delivery dipped 0.05% to trade at USD22.640 a troy ounce, while copper for December delivery was up 0.30% to trade at USD3.279 a pound.



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