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Gold slightly higher after another U.S. tumble

Published 07/02/2013, 08:15 PM
Updated 07/02/2013, 08:16 PM
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Investing.com - Gold futures traded modestly higher in the early part of Wednesday’s Asian session after the yellow metal turned in another downbeat performance during Tuesday’s U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched up 0.03% to USD1,243.75 per troy ounce in Asian trading Wednesday after settling down 1.05% at USD1,242.55 a troy ounce in U.S. trading on Tuesday.

Gold futures were likely to find support at USD1,224.85 a troy ounce, Monday's low, and resistance at USD1,300.55, the high from June 24.

U.S. data points out Tuesday weighed on gold. In U.S. economic news, the Commerce Department said U.S. factory orders rose 2.1% in May following a revised 1.3% gain in April. Economists expected a May increase of 2%.

Real estate data provider CoreLogic said U.S. home prices surged 12.2% in May. Of the 100 largest U.S. metro areas, home prices advanced in all three. Prices rose in 48 of 50 states.

Despite a modest rally late last week, gold closed the second quarter with a 24% loss, the yellow metal’s worst quarterly performance in multiple decades. That dour run has more traders expecting further downside and even some of the more bullish outlooks on gold forecast no more than a short-term short-covering bounce.

On Tuesday, Jefferies lowered its 2013 price target on gold to USD1,250 an ounce while paring its ratings on miner Barrick to hold. The research firm also lowered its ratings on Goldcorp, Kinross Gold and Newmont mining to underperform.

Elsewhere, Comex silver for September delivery rose 0.47% to USD19.400 per ounce while copper for September delivery added 0.34% to USD3.146 per ounce.




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