Investing.com - Gold prices on Monday were off the near 6-month
lows hit Friday, when Federal Reserve Chairman Ben Bernanke said
the U.S. economy was improving, and while sentiment remained
bearish, talk of building physical demand in China supported the
On the Comex division of the New York Mercantile Exchange, gold
futures for April delivery were down 0.11% at USD1,607.80 a troy
ounce in U.S. trading on Monday, up from a session low of
USD1,607.10 and down from a high of USD1,618.70 a troy ounce.
Gold futures were likely to test support USD1,598.25 a troy ounce,
Friday's low, and resistance at USD1,670.25, the high from Feb. 11.
Trading was quiet, as U.S. markets were closed for the President's
Fed Chairman Ben Bernanke told a G20 meeting of finance ministers
and central bankers last week that while unemployment rates remain
high in the U.S., the economy is improving and will help bring the
global economy up with it.
The news sent gold dropping to 6-month lows last week amid talk
that the Fed may soon consider winding down its USD85 billion
monthly bond-buying program, a monetary stimulus tool that weakens
the dollar to spur recovery and job demand.
Gold and the dollar normally trade inversely from one another.
Weak output data released last week continued to fuel dollar demand
as well on Monday.
Official data showed that U.S. industrial production contracted by
0.1% in January, missing expectations for a 0.2% rise and well
below a 0.4% increase the previous month.
Talk that China will begin ramping up physical demand for gold now
that the Lunar New Year holidays are over offset losses.
Meanwhile on the Comex, silver for March delivery was up 0.20% and
trading at USD29.908 a troy ounce, while copper for March delivery
was down 1.42% and trading at USD3.684 a pound.
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