On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.35% to USD1,296.55 per troy ounce in Asian trading Monday after settling up 0.75% on Friday to finish the week at USD1,295.55 a troy ounce.
Last week gold prices lost 6.8%, the worst weekly decline since September 2011. Gold futures were likely to find support at USD1,246.20 a troy ounce, the low from September 14, 2010 and near-term resistance at USD1,310.10, the high from September 28, 2010.
Gold was hammered last Thursday after Fed Chairman Ben Bernanke said the central bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
Gold and other precious metals have spent much of 2013 moving on commentary from global central banks, in particular the Fed. Tapering and the possible end of quantitative easing is seen as a positive for the U.S. dollar, which has already been an admirable performer this year. With gold and other commodities denominated in the U.S. dollars, the end of QE could further erode metals prices. The U.S. Dollar Index closed at a two-week high on Friday.
Gold will again be in focus this week as the U.S., the world’s largest economy, is slated to unveil data on durable goods orders, jobless claims and consumer confidence.
Now that traders view good economic news as bad for riskier assets because that good news could spell the end of QE, positive data points could weigh on gold.
Elsewhere, Comex silver for July deliver rose 0.44% to USD20.090 per ounce while copper for July delivery fell 0.34% to USD3.090 per ounce.