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Gold down slightly on profit-taking

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Investing.com - Gold futures traded slightly lower in the early part of Tuesday's Asian session as traders booked profits in the yellow metal following a stellar showing in Monday's U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched down 0.12% to USD1,334.45 per troy ounce in Asian trading Tuesday after settling up 3.04% at USD1,332.15 a troy ounce in U.S. trading on Monday.

Gold futures were likely to find support at USD1,295.45 a troy ounce, the session low, and resistance at USD1,391.35, the high from June 17.

Monday's performance represented gold's best intraday run in a year. Physical demand as well as a sanguine view of U.S. monetary policy helped buoy gold.

Stimulus programs such as the Federal Reserve's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, which makes gold an attractive hedge.Fed Chairman Ben Bernanke has stressed that the U.S. central bank will follow no present timetable to taper such policies.

Gold was also boosted by some tepid U.S. economic data that restored bullion's safe-haven appeal, at least for one day.

In U.S. economic news out Monday, the National Association of Realtors said existing home sales fell 1.2% to an annual rate of 5.08 million last month. The May number was revised down to 5.14 million. The median home price jumped 13.5% from June 2012, to $214,200. That is the 16th straight month of higher prices.

Gold's rally trickled over to miners as the Market Vectors Gold Miners ETF, the largest U.S.-listed ETF that tracks gold miners, surged 6.1%.

Elsewhere, silver for September delivery fell 0.10% to USD20.488 per ounce while copper for September delivery inched up 0.05% to USD3.182 per ounce.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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