Shutterstock photo
Markets

Gold, silver futures tumble on Fed tapering bets

Shutterstock photo

Shutterstock photo

Investing.com - " Gold and silver futures were sharply lower on Thursday, amid speculation the Federal Reserve could start tapering its bond-buying program sooner-than-expected.

Gold and silver prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,332.90 a troy ounce during European morning trade, down 1.2%.

Prices fell to a session low of USD1,330.00 a troy ounce earlier, the weakest level since October 23. The December contract ended 0.28% higher on Wednesday to settle at USD1,349.30 a troy ounce.

Gold futures were likely to find support at USD1,310.10 a troy ounce, the low from October 22 and resistance at USD1,361.70, the high from October 28.

The Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities, as widely expected.

Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing, sparking speculation the central bank could start tapering stimulus at its December meeting.

Later in the day, the U.S. was to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.

Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.

Elsewhere on the Comex, silver for December delivery plunged 3% to trade at USD22.29 a troy ounce, while copper for December delivery shed 0.6% to trade at USD3.305 a pound.

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