Monday, September 9, 2013

Gold slightly lower on increased risk appetite

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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