Investing.com - Gold futures traded lower during Wednesday’s Asian session despite media reports that President Barrack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen to lead the U.S. central bank when Chairman Ben Bernanke retires early next year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery dropped 0.52% to USD1,317.70 per troy ounce in Asian trading Wednesday. The December contract settled lower by 0.04% at USD1,324.60 per ounce on Tuesday.
Gold futures were likely to find support at USD1,308.80 a troy ounce, Monday's low, and resistance at USD1,375.10, the high from Sept. 19.
Bullion tumbled even as U.S. equities plunged as the U.S. government shutdown, the first since the 1990s, stretched into a second week. Traders are now less worried that the deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17, after which the risk of default rises.
Still, no country has seen credit default swaps on its sovereign as much in the past 90 days as the U.S. has, indicating some traders do not think its foregone conclusion the world’s largest economy will avoid its first ever default.
Traders did not boost gold despite the Yellen news. That may be a case of pricing in Yellen as Obama’s presumptive nominee after Larry Summers withdrew from consideration. Markets rallied when Summers said he no longer wanted to be Fed chairman because he was seen as more hawkish than Yellen.
Yellen has been vice chairwoman of the Fed since 2010 and announcement confirming she is the president’s choice could come later Wednesday.
Elsewhere, Comex silver for December delivery fell 0.30% to USD22.375 per ounce while copper for December delivery fell 0.09% to USD3.286 an ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery dropped 0.52% to USD1,317.70 per troy ounce in Asian trading Wednesday. The December contract settled lower by 0.04% at USD1,324.60 per ounce on Tuesday.
Gold futures were likely to find support at USD1,308.80 a troy ounce, Monday's low, and resistance at USD1,375.10, the high from Sept. 19.
Bullion tumbled even as U.S. equities plunged as the U.S. government shutdown, the first since the 1990s, stretched into a second week. Traders are now less worried that the deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17, after which the risk of default rises.
Still, no country has seen credit default swaps on its sovereign as much in the past 90 days as the U.S. has, indicating some traders do not think its foregone conclusion the world’s largest economy will avoid its first ever default.
Traders did not boost gold despite the Yellen news. That may be a case of pricing in Yellen as Obama’s presumptive nominee after Larry Summers withdrew from consideration. Markets rallied when Summers said he no longer wanted to be Fed chairman because he was seen as more hawkish than Yellen.
Yellen has been vice chairwoman of the Fed since 2010 and announcement confirming she is the president’s choice could come later Wednesday.
Elsewhere, Comex silver for December delivery fell 0.30% to USD22.375 per ounce while copper for December delivery fell 0.09% to USD3.286 an ounce.