FX Traders look onward as Gold falls on 3 ½ week low on Fed Tapering Scheme
November 12, 2013 – Gold futures had fallen now on a 3-and-a-half-week low on Tuesday, resulted in the ongoing expectations of the Federal Reserve will begin unwinding its stimulus programs by the end of the year.
Gold prices have tracked heavily by shifting expectations as to the Fed would start the tapering its USD85 billion a month asset purchasing initiative by the end of this year.
The Comex, a division of the New York Mercantile Exchange, the gold futures for December delivery traded at USD 1,280.65 an ounce during the U.S. morning session, down 0.05%.
The Comex gold prices fell to USD 1,276.80 a ounce earlier, the weakest level since October.
The most recent contract for December settled 0.27% lower on Monday to end at USD 1,281.80 a troy ounce.
However the Gold futures found support at USD 1,273.80 and resistance at USD1,273.80 an ounce a low from October 17 and support at USD 1,313.30 the high from November 8.
The official data released from the U.S. economy added 204,000 jobs in October, an increase of 125,00 increase.
FX traders looking ahead to Thursday’s Senate hearings to confirm Jante Yellen’s plans for the tapering strategy next year.
Gold prices are down approximately 24% this year on concerns the Fed will begin to scale back its stimulus sooner than expected.