MTECHTIPS;-Gold dips as market braces for further Fed stimulus cuts Gold prices edged lower on Monday as investors bet the Federal Reserve will conclude a monetary policy meeting on Wednesday by announcing further cuts to its USD75 billion monthly bond-buying stimulus program On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,263.20 a troy ounce during U.S. trading, down 0.10%, up from a session low of USD1,257.20 and off a high of 1,279.20 The April contract settled up 0.16% at USD1,264.50 on Friday Futures were likely to find support at USD1,231.30 a troy ounce, Thursdays low, and resistance at USD1,279.20, the earlier high. The Federal Reserve will conclude a monetary policy meeting on Wednesday, and investors held firm on expectations that monetary authorities will make fresh cuts to its USD75 billion in monthly bond purchases due to several months of improving economic indicator Stimulus tools such as Fed purchases of Treasury holdings and mortgage debt suppress interest rates to spur recovery, thus weakening the dollar as long as they remain in effect and making gold an attractive hedge. Soft U.S. housing data cushioned golds losses by reminding investors that the Federal Reserve will taper bond purchases very gradually. The Census Bureau reported earlier that sales of new, single-family houses in December came in at a seasonally adjusted annual rate of 414,000, missing market calls for a 475,000 reading and also below Novembers revised figure of 445,000, which softened the dollar slightly. WWW.MTECHTIPS.COM 07489294118-119
Posted on: Tue, 28 Jan 2014 08:45:22 +0000
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