Shutterstock photo
Markets

Gold opens week lower in Asia tracking late-week U.S. losses

Shutterstock photo

Shutterstock photo

Investing.com - Gold futures traded lower in the early part of Monday's Asian session as traders in the region responded to the yellow metal's late week declines in the U.S. last week.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.38% to USD1,327.50 per troy ounce in Asian trading Friday. The December contract settled lower by 2.69% at USD1,332.50 per ounce last Friday.

Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,375.10, the high from September 19.

Despite Friday's sharp decline, gold prices still ended the week with a 0.5% gain, due to Thursday's sharp rally. Gold prices soared by as much as 4.5% on Thursday after the Federal Reserve decided to leave its USD85 billion-a-month stimulus program unchanged.

Still, the sell-off in gold and other precious metals did not go unnoticed last Friday as bullion and gold miners ETFs gave back essentially all of their no tapering announcement gains.

While the Fed's no tapering decision surprised markets, which had been expecting the central bank to taper its monthly stimulus program by USD10 billion to USD15 billion, the tapering conversation has not been entirely put to rest.

In fact, expectations are in place that the Fed could begin trimming its asset purchases as soon as next month. Many market observers expect some form of tapering to be seen by the end of this year at the very latest.

Gold, silver and other metals were roiled last Friday after St. Louis Fed President James Bullard said the decision not to taper in September was "close" and did not rule out a small reduction in the central bank's bond purchases in October. The Fed will hold its next monetary policy meeting on Oct. 29-30.

Elsewhere, Comex silver for December delivery fell 0.21% to USD21.880 per ounce while copper for December delivery dropped 0.24% to USD3.297 per ounce.

Investing.com - Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com or Follow us on Twitter at @ InvestingCom

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.

Other Topics

ForEx