Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold prices fluctuate during Asian trading

Published 01/27/2014, 06:43 PM
Updated 01/27/2014, 06:47 PM

Investing.com - Gold prices fluctuated between small gains and losses on Tuesday as investors continue to bet the Federal Reserve will conclude a monetary policy meeting on Wednesday by announcing further cuts to its USD75 billion monthly bond-buying stimulus program.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded up 0.14% at USD1,256.60 a troy ounce during Asian trading.

On Monday gold futures traded in the range of 1254.70 and 1,256.80. The April contract settled at USD1,254.90 on Monday.

Futures were likely to find support at USD1,231.30 a troy ounce, Thursday's low, and resistance at USD1,279.20, the earlier high.

The Federal Reserve will conclude a monetary policy meeting on Wednesday, and investors held firm on expectations that monetary authorities will make fresh cuts to its USD75 billion in monthly bond purchases due to several months of improving economic indicators.

Stimulus tools such as Fed purchases of Treasury holdings and mortgage debt suppress interest rates to spur recovery, thus weakening the dollar as long as they remain in effect and making gold an attractive hedge.

Soft U.S. housing data cushioned gold's losses by reminding investors that the Federal Reserve will taper bond purchases very gradually.

The Census Bureau reported earlier that sales of new, single-family houses in December came in at a seasonally adjusted annual rate of 414,000, missing market calls for a 475,000 reading and also below November's revised figure of 445,000, which softened the dollar slightly.

The figure was still well above the December 2012 reading of 396,000, and the data also revealed that inventories remain lean and prices continue rising, which muted the report's impacts on both gold and the dollar. which tend to trade inversely with one another.

Meanwhile, silver for March delivery was up 0.43% and trading at USD19.690 a troy ounce, while copper futures for March delivery were up 0.05% and trading at USD3.256 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.