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MTECHTIPS:-Gold futures little changed as stronger dollar weighs
Gold futures were little changed during European morning trade on Monday, as the fiscal uncertainty surrounding Spain and Greece continued to drive investors to the relative safety of the U.S. dollar. Growing expectations the Bank of Japan will introduce more monetary easing measures at its next policy meeting on October 30 supported the precious metal.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,711.65 a troy ounce during European morning trade, nearly flat on the day.Prices held in a tight trading range of USD1,717.85 a troy ounce, the daily high and a session low of USD1,710.85 a troy ounce. Gold futures fell to a seven-week low of USD1,699.65 a troy ounce on October 24.Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,731.25, the high from October 22.Trading activity was expected to remain thin on Monday, as a result of the first unscheduled, market-wide shut down since September 2001, as Hurricane Sandy approached the northeastern U.S.Gold’s losses came as the euro re-approached a three-week low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.27% to trade at 80.32, close to a seven-week high. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.Markets were jittery amid ongoing uncertainty over whether Spain is preparing to request a bailout from its euro zone partners, which would activate a bond buying program by the European Central Bank.
Gold futures were little changed during European morning trade on Monday, as the fiscal uncertainty surrounding Spain and Greece continued to drive investors to the relative safety of the U.S. dollar. Growing expectations the Bank of Japan will introduce more monetary easing measures at its next policy meeting on October 30 supported the precious metal.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,711.65 a troy ounce during European morning trade, nearly flat on the day.Prices held in a tight trading range of USD1,717.85 a troy ounce, the daily high and a session low of USD1,710.85 a troy ounce. Gold futures fell to a seven-week low of USD1,699.65 a troy ounce on October 24.Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,731.25, the high from October 22.Trading activity was expected to remain thin on Monday, as a result of the first unscheduled, market-wide shut down since September 2001, as Hurricane Sandy approached the northeastern U.S.Gold’s losses came as the euro re-approached a three-week low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.27% to trade at 80.32, close to a seven-week high. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.Markets were jittery amid ongoing uncertainty over whether Spain is preparing to request a bailout from its euro zone partners, which would activate a bond buying program by the European Central Bank.
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