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Gold Inches Down Amid Uncertainty About Fed Stimulus

ByICN.com
Published 08/27/2013, 06:55 AM
Updated 07/09/2023, 06:31 AM
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Precious-Gold inched down on Tuesday's trading as investors looked for more clues as to whether the Fed will scale back stimulus next month. Gold is currently trading around $1,401.25 an ounce, following a high of $1,406.96 and a low of $1,395.36. The trading range expected for Tuesday could be between a support at $1,365 and resistance at $1,420.

The shiny metal is still not capable of breaching resistance at $1,406 levels as it lacks momentum due to the status of uncertainty regarding the future of the Fed’s non-standard measures. However, gold is still in an upside trend, which started after hitting a bottom of $1,180.64 on June 28, as it benefited from mixed U.S. data and announcements by policymakers which did not include any confirmation about stimulus withdrawal.

Data released yesterday showed that in the U.S. durable goods orders dropped 7.3% in July, the biggest drop in nearly a year, from a revised of 3.9%, compared to a median estimate of -4.0%. Later in the day, eyes will focus on U.S. consumer confidence for August which is expected to retreat to 79.0 from a prior of 80.3.

The minutes of July meeting showed that the Fed policymakers were in favor of tapering stimulus this year should the economy shows signs of improvement. Further evidence, however, may be clearer after the coming NFP report, which will give clues about the U.S. labor market, while the next Fed meeting will be highly watched.

The U.S. dollar slipped against a basket of major currencies, as depicted by the dollar index, to hover around 81.41 from the session’s opening of 81.60. In Germany, business confidence which is predicted to show further progress in August is predicted to weigh on movements due its relevance.

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