Gold futures traded higher in the early part of Tuesday’s Asian session as traders boosted bullion amid weakness in the U.S. dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.23% to USD1,305.35 per troy ounce in Asian trading Tuesday. The December contract settled lower by 0.78% at USD1,300.25 per ounce during Monday’s U.S. trade.
Gold futures were likely to find support at USD1,282.65 a troy ounce, Friday's low, and resistance at USD1,339.15, Wednesday's high.
Another strong U.S. economic data point out Monday had investors moving out of gold, though it was a slack day for equities as well.
In U.S. economic news out Monday, the Institute for Supply Management said its services index climbed to 56 in July from 52.2 in June. Economists expected a July reading of 53. The new orders index rose to 57.7 from 50.8, but the employment index fell to 53.2 from 54.7. Readings above 50 indicate expansion.
The ISM report renewed expectations for the Federal Reserve to begin tapering its stimulus programs later this year, which weakened gold, though uncertainty curbed losses, especially in wake of a lackluster U.S. July jobs report released late last week.
Although markets appear to be adjusting to the fact Fed tapering is a matter of "when not if," lingering uncertainty over the actual start date of tapering could weigh on gold and other dollar-denominated commodities in the coming weeks.
Elsewhere, Comex silver for September delivery inched down 0.04% to USD19.712 per ounce while copper for September delivery fell 0.14% to USD3.163. Bearish bets on copper have risen noticeably in recent days.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.23% to USD1,305.35 per troy ounce in Asian trading Tuesday. The December contract settled lower by 0.78% at USD1,300.25 per ounce during Monday’s U.S. trade.
Gold futures were likely to find support at USD1,282.65 a troy ounce, Friday's low, and resistance at USD1,339.15, Wednesday's high.
Another strong U.S. economic data point out Monday had investors moving out of gold, though it was a slack day for equities as well.
In U.S. economic news out Monday, the Institute for Supply Management said its services index climbed to 56 in July from 52.2 in June. Economists expected a July reading of 53. The new orders index rose to 57.7 from 50.8, but the employment index fell to 53.2 from 54.7. Readings above 50 indicate expansion.
The ISM report renewed expectations for the Federal Reserve to begin tapering its stimulus programs later this year, which weakened gold, though uncertainty curbed losses, especially in wake of a lackluster U.S. July jobs report released late last week.
Although markets appear to be adjusting to the fact Fed tapering is a matter of "when not if," lingering uncertainty over the actual start date of tapering could weigh on gold and other dollar-denominated commodities in the coming weeks.
Elsewhere, Comex silver for September delivery inched down 0.04% to USD19.712 per ounce while copper for September delivery fell 0.14% to USD3.163. Bearish bets on copper have risen noticeably in recent days.
Comments
Post a Comment