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Gold futures rise more than 1% after Friday’s sell-off

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Investing.com - Gold futures rose more than 1% on Monday, as investors returned to the market to seek cheap valuations in wake of Friday's sharp sell-off.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,232.75 a troy ounce during U.S. morning hours, up 1.65% on the day.

Comex gold prices rose by as much as 1.8% earlier in the session to hit a daily high of USD1,237.05 a troy ounce.

Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28 and a 34-month low and resistance at USD1,249.75, Friday's session high.

Gold prices tumbled more than 2% on Friday after the Department of Labor said the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.

May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.

Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.

Gold prices are on track to post a loss of 27% on the year, the worst yearly decline since 1981, amid speculation the Fed will start to unwind its stimulus program by the year's end.

Investors are now looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

Elsewhere on the Comex, silver for September delivery surged 2.4% to trade at USD19.18 a troy ounce, while copper for September delivery added 0.3% to trade at USD3.074 a pound.

Copper traders are looking ahead to key data out of top consumer China later in the week.

The Asian nation will release reports on consumer prices on Tuesday and trade balance figures on Wednesday.

China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

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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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