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Gold rises in Asian trade following U.S. tumble

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Investing.com - Gold futures rose modestly in early Asian trading Wednesday as some buyers stepped in to do some bargain shopping after the yellow metal tumbled during Tuesday's U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery added 0.34% to USD1,676.25 per troy ounce in Asian trading Wednesday. Gold traded as high as USD1,677.85 and as low as USD1,670.25 per ounce.

Gold futures were likely to test support USD1,646.45 a troy ounce, the low from Aug. 31, and resistance at USD1,711.15, the high from Dec. 13.

The yellow metal was hammered during Tuesday's U.S. session as Comex-traded futures slid 1.71% to USD1,669.15 a troy ounce as optimism grew that a resolution for the fiscal cliff is approaching. While no agreement has been finalized, the Obama Administration and Congressional Republicans continue negotiations about averting the fiscal cliff and that alone seems to be giving traders reason to bid up riskier assets.

House Speaker John Boehner still plans to bring a bill to the floor of the U.S. House this week that raises income taxes only those households with annual income in excess of $1 million. President Obama wants taxes to rise on those earning more than $400,000 per year.

Republicans are also clamoring for more spending cuts than the USD930 billion proposed over 10 years proposed by the White House. Neither Boehner nor President Obama have been open about from where the spending cuts will come and both parties appear reluctant about trimming fat from the massive U.S. budget. U.S. policymakers have until January 1, 2013 to avert the fiscal cliff.

Elsewhere, Comex silver for March delivery added 0.4% in early Asian trade to 31.795. The white metal plunged 2.17% to USD31.578 a troy ounce during Tuesday's U.S. session. Copper for March delivery added 0.29% to USD3.656 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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