Investing.com - Gold futures traded slightly lower in the early part of
Tuesday’s Asian session due to increased appetite for riskier asset
following a stellar day for U.S. equities.
On the Comex division
of the New York Mercantile Exchange, gold futures for December delivery
inched down 0.08% to USD1,385.60 per troy ounce in Asian trading
Tuesday. The December contract settled up 0.01% at USD1,386.70 per ounce
on Monday.
Gold futures were likely to find support at
USD1,361.80 a troy ounce, Friday's low, and resistance at USD1,416.30,
Tuesday's high.
Following a spate of bullish Asian economic data
points released over the weekend and during Monday’s Asian session,
U.S. stocks raced higher Monday with the benchmark S&P 500 index
surging 1%.
Through the first five trading days of this month,
U.S. stocks have betrayed September’s reputation for being the worst
month of the year in which to be long equities. Bullish moves in stocks
has erased some of gold’s luster due to the yellow metal’s safe-haven
status.
Last Friday, U.S. jobs data fueled speculation that the
Federal Reserve may hold off announcing plans to begin winding down its
USD85 billion in monthly bond purchases at its Sept. 17-18 policy
meeting, though by Monday, many investors backtracked on that opinion,
betting that the Fed remains on course to begin scaling back its asset
purchases this month even if just by a little.
Some market
observers have said the Fed will not formally announce tapering if the
U.S. is engaged in military operations against Syria at the time of the
FOMC meeting.
Elsewhere, Comex silver for December delivery fell
0.06% to USD23.703 per ounce while copper for December delivery inched
down 0.01% to USD3.280.
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