Investing.com - Gold prices fell on Monday amid continuing
sentiments the Federal Reserve is closer to scaling back stimulus
programs that weaken the dollar to spur recovery.
Gold and the dollar tend to trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold
futures for August delivery were down 0.31% at USD1,288.05 a troy
ounce in U.S. trading on Monday, up from a session low of
USD1,275.45 and down from a high of USD1,300.45 a troy ounce.
Gold futures were likely to find support at USD1,268.75 a troy
ounce, Friday's low, and resistance at USD1,391.35, last Monday's
Gold continued to fall after Federal Reserve Chairman Ben Bernanke
said last week that monetary stimulus measures may taper this year
and possibly end next year if the economy improves.
Stimulus programs such as the Fed's monthly USD85 billion
bond-buying program weaken the dollar to spur recovery, which makes
gold an attractive hedge, though talk of their dismantling sends
the dollar rising and gold falling.
The Federal Reserve Bank of Philadelphia said late last week that
its manufacturing index rose to 12.5 in June from -5.2 in May, well
above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2%
to 5.18 million units in May from April's total of 4.97 million,
far surpassing market calls for a 0.6% increase.
Elsewhere on the Comex, silver for September delivery was down
1.14% at USD19.773 a troy ounce, while copper for September
delivery was down 1.64% and trading at USD3.049 a pound.
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