Shutterstock photo
Markets

Gold prices fall in Asia despite reports of rising China demand

Shutterstock photo

Shutterstock photo

Investing.com - Gold prices fell in Asia on Monday despite reports last week of rising physical demand from China.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,234.40 a troy ounce during U.S. trading, down 0.35%. Gold prices traded in a range between USD1,232.80 a troy ounce and USD1,237.80 a troy ounce.

Futures were likely to find near-term support at USD1,181.90 a troy ounce, the low from Dec. 31, and resistance at USD1,251.40, the high from Dec. 16.

On Friday, the reports of rising demand for gold bars and jewelry in Asia sent prices spiking, which brought in bargain hunters who viewed the yellow metal as an attractive buy.

Gold prices fell about 29% in 2013 amid growing expectations that the Federal Reserve will taper its bond purchases in 2014 and possibly end the program later this year.

Outgoing Fed Chairman Ben Bernanke said any decision to trim the U.S. central bank's USD75 billion in asset purchases this year shouldn't be interpreted as a sign that tighter monetary policy is around the corner.

"It is important to recognize that the potential signaling aspect of asset purchases depends on the broader economic and policy context. In particular, the [Fed's] decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed," Bernanke said in prepared remarks of a speech he gave on Friday.

Elsewhere on the Comex, silver futures for March delivery were down 0.06% and trading at USD20.115 a pound, while copper for March delivery was down 0.07% at 3.350

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

Read more News on Investing.com and download the new Investing.com Stocks & Finance App for Android!

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