Gold inches lower in Asia after U.S. loss

Gold inches lower in Asia after U.S. loss

Submitted by caseyb23 on Thu, 07/18/2013 - 04:05

Gold inches lower in Asia after U.S. loss

Investing.com – Gold futures traded slightly lower in the early part of Thursday's Asian session after taking another Federal Reserve-induced tumble during Wednesday's U.S. session.�

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched down 0.07% to USD1,276.55 per troy ounce in Asian trading Thursday after trading lower by more than 1% during U.S. trade Wednesday.�

Gold futures were likely to find support at USD1,237.05 a troy ounce, the low from July 8 and near-term resistance at USD1,301.75, the high from June 21.�

Traders boosted bullion higher earlier in the session after Federal Reserve Chairman Ben Bernanke said the pace of the central bank's bond purchases are not a “preset course” In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank's bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.�

Bernanke reassured skittish markets that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future.�

The Fed chief also overtly pointed out that the central bank's USD85 billion-a-month bond-buying program will in fact be tapered later this year and perhaps ended outright by the middle of 2014. Easing programs are seen as destructive currencies, which in turn boosts dollar-denominated commodities such as gold.�

Elsewhere, Comex silver for September delivery fell 0.35% to USD19.353 per ounce while copper for September delivery rose 0.13% to USD3.137 per ounce.