FX Traders Looking for Safe Haven Over Gold Futures 4-Month Low
November 22, 2013 – Gold futures moved higher on Friday, but maintained a 4 month low anticipating the Federal Reserve to begin its tapering its asset-purchase program.
The Comex division of the New York Mercantile Exchange, the gold futures for December delivery traded rapidly at USD 1,246.20 an ounce during the European afternoon trading session up from 0.23%.
The contract for December ended 1.14% lower on Thursday to settle the contract at USD 1,243.6 an ounce.
Gold futures found support at USD 1,235.90, an ounce, Thursday’s low and resistance at USD 1,275.70, the high from November 20 respectively.
However, gold prices remained under pressure after a positive U.S. data release on Thursday gained more expectations that the fed will scale back their stimulus program.
Data released shows that the U.S. manufacturing activity improved to a eight-month high of 54.4 in November from a reading of 51.9 in late October.
Reported unemployed people filed for benefits fell by 21,000, a season adjustment from 323,000.
The minutes of the Fed’s October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
Moreover, on the Comex, silver for December delivery rose 0.27% to trade at USD19.987 a troy ounce, while copper for December delivery added 0.25% to trade at USD3.200 a pound.