Investing.com - Gold futures traded lower during Tuesday’s Asian session as the yellow metal was hit with some profit-taking following an impressive showing Monday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.23% to USD1,322.10 per troy ounce in Asian trading Tuesday. The December contract settled higher by 1.16% at USD1,307.90 per ounce on Monday.
Gold futures were likely to find support at USD1,278.20 a troy ounce, Wednesday's low, and resistance at USD1,375.10, the high from Sept. 19.
Gold was embraced from the long side Monday as the U.S. government shutdown spanned into a seventh day, applying pressure to the U.S. dollar in the process. An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Market participants are growing increasingly worried that the Congressional stalemate risks going through October 17, the day Congress must raise the U.S. debt ceiling. The U.S. has never failed to raise the debt ceiling and by not doing so, risks the first ever default on its sovereign debt obligations. Moody’s Investors Service has said a U.S. default is unlikely.
Elsewhere, there is speculation that emerging markets central banks, previously veracious buyers of gold, are becoming put-off by the yellow metal’s volatility and could look to pare their gold holdings. Should that scenario materialize, that would create increased selling pressure on gold.
Meanwhile, Comex silver for December delivery dropped 0.42% to USD22.293 per ounce while copper for December delivery fell 0.08% to USD3.293 an ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.23% to USD1,322.10 per troy ounce in Asian trading Tuesday. The December contract settled higher by 1.16% at USD1,307.90 per ounce on Monday.
Gold futures were likely to find support at USD1,278.20 a troy ounce, Wednesday's low, and resistance at USD1,375.10, the high from Sept. 19.
Gold was embraced from the long side Monday as the U.S. government shutdown spanned into a seventh day, applying pressure to the U.S. dollar in the process. An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Market participants are growing increasingly worried that the Congressional stalemate risks going through October 17, the day Congress must raise the U.S. debt ceiling. The U.S. has never failed to raise the debt ceiling and by not doing so, risks the first ever default on its sovereign debt obligations. Moody’s Investors Service has said a U.S. default is unlikely.
Elsewhere, there is speculation that emerging markets central banks, previously veracious buyers of gold, are becoming put-off by the yellow metal’s volatility and could look to pare their gold holdings. Should that scenario materialize, that would create increased selling pressure on gold.
Meanwhile, Comex silver for December delivery dropped 0.42% to USD22.293 per ounce while copper for December delivery fell 0.08% to USD3.293 an ounce.