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Gold dips as dollar gains, though dovish Fed language supports

Published 10/10/2014, 03:14 PM
Updated 10/10/2014, 03:16 PM
Gold slides as dollar remains firm, though dovish Fed language provides residual support

Investing.com - Gold futures edged lower on Friday after the dollar continued to see support on concerns the global economy may be slumping as the U.S. recovers, though dovish language out of the Federal Reserve this week cushioned losses.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,222.40 a troy ounce, down 0.24%, up from a session low of $1,217.70 and off a high of $1,225.80.

The December contract settled up 1.60% at $1,225.30 on Thursday.

Futures were likely to find support at $1,183.30 a troy ounce, Monday's low, and resistance at $1,234.00, Thursday's high.

In the U.S. earlier, data revealed that import prices fell 0.5% in September from August, better than market calls for a 0.7% contraction, though still a decline nonetheless, a sign a stronger dollar and a softer global economy could water down inflationary pressures in the U.S.

Earlier this week, the Federal Reserve suggested rate hikes might not come as quickly than markets are expecting, though the dollar firmed anyway due to ongoing expectations for U.S. and European monetary policies to diverge, which kept gold in negative territory though supported somewhat nonetheless.

Gold and the dollar tend to trade inversely with one another.

Meanwhile, silver for December delivery was down 0.55% at $17.322 a troy ounce, while copper futures for December delivery were up 0.24% at $3.037 a pound.

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