Gold and the dollar trade inversely from one another, and solid economic indicators tend to put to rest talk of Federal Reserve stimulus measures, which would weaken the greenback to spur recovery and send gold climbing as a side effect.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.79% and trading at USD1,660.05 a troy ounce, up from a session low of USD1,658.25 and down from a high of USD1,665.85 a troy ounce early during the session.
Gold futures were likely to test support at USD1,653.75 a troy ounce, the low from Aug. 23, and resistance at USD1,673.85, the high from Aug. 24.
The Conference Board's consumer confidence index will publish later Tuesday and provide markets with forward-looking insight into the future of the U.S. economy, considering consumer demand drives 70% of total U.S. output.
Similar indicators have surprised on the upside in recent trading sessions.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.
Hopes the Conference Board's figures will surprise as well and put to rest talk the Federal Reserve will stimulate the economy via monetary easing tools sent the dollar gaining.
The Federal Reserve will host its annual symposium at Jackson Hole, Wyoming next week, where Fed Chairman Ben Bernanke has announced monetary easing measures in the past.
While the market remains on edge, talk began to build Tuesday that if the Fed does decide to jolt the economy with monetary stimulus, it may wait until after the Jackson Hole symposium when it has more data to digest, which further sent gold falling.
Elsewhere on the Comex, silver for December delivery was down 1.31% and trading at USD30.728 a troy ounce, while copper for December delivery was down 0.58% and trading at USD3.454 a pound.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment