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MTECHTIPS:-Gold ends gains in session marked by profit taking
Gold prices fell in Asian trading Monday amid profit taking after soaring to near four-week highs Friday on news that the U.S. economy picked up fewer jobs in May than previously hoped. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded down 0.26% at USD1,617.85 a troy ounce. Gold hit at a low of USD1,617.35 a troy ounce and a high of USD1,628.45 a troy ounce during the session.Gold futures were likely to test support at USD1,574.45 a troy ounce, the low of May 28, and resistance at USD1,631.25, the high from May 25.The U.S. economy added a net 69,000 nonfarm payrolls in May, far beneath expectations for gain of about 150,000.The headline unemployment rate, meanwhile, rose to 8.2% in May from 8.1% in April, which sent gold soaring initially on talk the Federal Reserve may feel obliged to intervene and stimulate the economy via quantitative easing, which are asset purchases from banks that flood the economy with liquidity.Quantitative easing sends the dollar weakening as a tradeoff for price stability and also for conditions that encourage hiring, and a weak dollar normally sends gold rising.
Gold prices fell in Asian trading Monday amid profit taking after soaring to near four-week highs Friday on news that the U.S. economy picked up fewer jobs in May than previously hoped. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded down 0.26% at USD1,617.85 a troy ounce. Gold hit at a low of USD1,617.35 a troy ounce and a high of USD1,628.45 a troy ounce during the session.Gold futures were likely to test support at USD1,574.45 a troy ounce, the low of May 28, and resistance at USD1,631.25, the high from May 25.The U.S. economy added a net 69,000 nonfarm payrolls in May, far beneath expectations for gain of about 150,000.The headline unemployment rate, meanwhile, rose to 8.2% in May from 8.1% in April, which sent gold soaring initially on talk the Federal Reserve may feel obliged to intervene and stimulate the economy via quantitative easing, which are asset purchases from banks that flood the economy with liquidity.Quantitative easing sends the dollar weakening as a tradeoff for price stability and also for conditions that encourage hiring, and a weak dollar normally sends gold rising.
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