Investing.com - " Gold prices carried Friday's losses into
Monday after better-than-expected U.S. jobs and growth data fueled
demand for the dollar by fanning expectations for the Federal
Reserve to begin scaling backs monetary stimulus programs in the
Gold and the dollar trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at USD1,281.30 during U.S.
afternoon hours, down 0.26%.
Gold prices hit a session low of USD1,278.50 a troy ounce and high
of USD1,288.40 a troy ounce.
Gold futures were likely to find support at USD1,251.10 a troy
ounce, the low from Oct. 15, and resistance at USD1,325.70,
The December contract settled down 1.83% at USD1,284.60 a troy
ounce on Friday.
On Friday, the Bureau of Labor Statistics reported that the U.S.
economy added 204,000 jobs in October, far surpassing expectations
for a 125,000 increase.
A day earlier, official data showed that the U.S. economy grew 2.8%
on year in the third quarter, well beyond expectations for 2.0%
The figures fueled market sentiments that the Federal Reserve could
soon announce plans to scale back its USD85 billion in monthly
asset purchases, which drive down borrowing costs to spur recovery,
weakening the greenback and boosting gold prices as side effects.
The dollar fell after profit taking kicked in on Monday, especially
after investors concluded that the Fed may likely leave its
stimulus policies unchanged at least until Jane Yellen takes the
helm of the U.S. central bank and holds her first policy meeting in
Further fueling profit taking were concerns that fewer high-quality
jobs are being created when compared to retail, leisure and
Still, gold remained in negative territory on sentiments that the
days of ultra-loose monetary policies that have bolstered the
precious metal since the 2008 financial crisis will end soon.
Elsewhere on the Comex, silver for December delivery was down 0.07%
at USD21.303 a troy ounce, while copper for December delivery was
up 0.16% and trading at USD3.259 a pound.
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