Gold prices held on to heavy losses in thin year-end trading conditions
on Monday, after data showed that pending home sales in the U.S. rose
less-than-expected in November.
Futures were likely to find near-term support at USD1,195.70 a troy ounce, the low from December 24 and resistance at USD1,218.30, the high from December 27. The February contract settled 0.14% higher on Friday to end at USD1,214.00 a troy ounce.
Meanwhile, silver for March delivery dropped by as much as 2.5% earlier in the session to hit USD19.54 a troy ounce, before coming off the lows to trade at USD19.67, down 1.9%. Financial Astrology
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
The National Association of Realtors said in a report earlier that its pending home sales index increased by a seasonally adjusted 0.2% last month, disappointing expectations for a 1% gain. Pending home sales for October were revised to a 1.2% decline from a previously reported drop of 0.6%.
Year-on-year, pending home sales fell at annualized rate of 4% in November, significantly worse than expectations for a 0.2% decline, after declining 2.7% in October.
Gold prices remained lower amid expectations of further stimulus tapering by the Federal Reserve.
Comex gold prices plunged to a six-month low of USD1,186,00 a troy ounce on December 19, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.Share Tips
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 28% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus. Meanwhile, silver prices lost nearly 34% this year.
Elsewhere on the Comex, copper futures for March delivery dipped 0.1% to trade at USD3.382 a pound, holding near a four-month high. Intraday Tips
Gold maintains losses after U.S. pending home sales data
On
the Comex division of the New York Mercantile Exchange, gold futures
for February delivery traded at USD1,204.30 a troy ounce during U.S.
morning trade, down 0.8%. Gold prices traded in a range between
USD1,200.30 a troy ounce and USD1,215.80 a troy ounce Free Commodity tips Futures were likely to find near-term support at USD1,195.70 a troy ounce, the low from December 24 and resistance at USD1,218.30, the high from December 27. The February contract settled 0.14% higher on Friday to end at USD1,214.00 a troy ounce.
Meanwhile, silver for March delivery dropped by as much as 2.5% earlier in the session to hit USD19.54 a troy ounce, before coming off the lows to trade at USD19.67, down 1.9%. Financial Astrology
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
The National Association of Realtors said in a report earlier that its pending home sales index increased by a seasonally adjusted 0.2% last month, disappointing expectations for a 1% gain. Pending home sales for October were revised to a 1.2% decline from a previously reported drop of 0.6%.
Year-on-year, pending home sales fell at annualized rate of 4% in November, significantly worse than expectations for a 0.2% decline, after declining 2.7% in October.
Gold prices remained lower amid expectations of further stimulus tapering by the Federal Reserve.
Comex gold prices plunged to a six-month low of USD1,186,00 a troy ounce on December 19, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.Share Tips
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 28% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus. Meanwhile, silver prices lost nearly 34% this year.
Elsewhere on the Comex, copper futures for March delivery dipped 0.1% to trade at USD3.382 a pound, holding near a four-month high. Intraday Tips
