Gold prices extended Friday's losses into Monday as investors continued to avoid the precious metal after a key Federal Reserve official said that monetary authorities may consider tapering stimulus programs in October.
The commodity skyrocketed last week after the Federal Reserve announced it would continue to stimulate the U.S. economy with its USD85 billion monthly bond-buying program.
Ultra-loose monetary policies that include asset purchases drive down interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.50 during U.S. afternoon hours, down 0.53%.
Gold prices hit a session low of USD1,313.60 a troy ounce and high of USD1,331.80 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,375.10, Thursday's high.
The December contract settled down 2.69% at USD1,332.50 a troy ounce on Friday.
Gold prices soared last week after the Fed made no changes to its USD85 billion bond-buying program.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more.
On Friday, however, St. Louis Fed President James Bullard said that the U.S. central bank could taper its stimulus program during its October meeting, which sparked a round of profit-taking that sent gold prices falling.
The Federal Reserve will hold a monetary policy meeting Oct. 29-30, though it was not expected to hold a press conference afterwards, leaving market participants betting for a December start date to begin tapering asset purchases.
Still, gold saw some support after the Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"In my view, the economy still needs the support of a very accommodative monetary policy. Adjustments to that policy need to be anchored in an assessment of how the economy is actually performing, how financial conditions are evolving, and how this affects the longer-term outlook and the risks around it," Dudley said in prepared remarks of a speech he delivered earlier.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery."
Elsewhere on the Comex, silver for December delivery was down 0.40% at USD21.840 a troy ounce, while copper for December delivery was down 0.56% and trading at USD3.302 a pound.
The commodity skyrocketed last week after the Federal Reserve announced it would continue to stimulate the U.S. economy with its USD85 billion monthly bond-buying program.
Ultra-loose monetary policies that include asset purchases drive down interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.50 during U.S. afternoon hours, down 0.53%.
Gold prices hit a session low of USD1,313.60 a troy ounce and high of USD1,331.80 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,375.10, Thursday's high.
The December contract settled down 2.69% at USD1,332.50 a troy ounce on Friday.
Gold prices soared last week after the Fed made no changes to its USD85 billion bond-buying program.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more.
On Friday, however, St. Louis Fed President James Bullard said that the U.S. central bank could taper its stimulus program during its October meeting, which sparked a round of profit-taking that sent gold prices falling.
The Federal Reserve will hold a monetary policy meeting Oct. 29-30, though it was not expected to hold a press conference afterwards, leaving market participants betting for a December start date to begin tapering asset purchases.
Still, gold saw some support after the Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"In my view, the economy still needs the support of a very accommodative monetary policy. Adjustments to that policy need to be anchored in an assessment of how the economy is actually performing, how financial conditions are evolving, and how this affects the longer-term outlook and the risks around it," Dudley said in prepared remarks of a speech he delivered earlier.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery."
Elsewhere on the Comex, silver for December delivery was down 0.40% at USD21.840 a troy ounce, while copper for December delivery was down 0.56% and trading at USD3.302 a pound.
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