MTECHTIPS

Gold trades above USD1, 250 after disappointing durable goods data
Gold prices were higher on Wednesday, after data showed that U.S. core durable goods orders declined unexpectedly last month. Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1, 251.10 a troy ounce during U.S. morning trade, up 0.8%. Comex gold prices held in a range between USD1, 241.15 a troy ounce and USD1, 254.10 a troy ounce. The February contract ended little changed on Tuesday to settle at USD1, 241.50 a troy ounce. Gold futures were likely to find support at USD1, 226.40 a troy ounce, the low from November 25 and resistance at USD1, 254.40, the high from November 25. The U.S. Commerce Department said earlier that core durable goods orders inched down by a seasonally adjusted 0.1% in October, disappointing expectations for a 0.5% increase. Total durable goods orders dropped by a seasonally adjusted 2%

last month, worse than expectations for a 1.9% decline. Orders for core capital goods, a key barometer of private-sector business investment, fell 1.2% in October, disappointing expectations for a 0.6% gain.

Gold trims gains as investors digest flurry of U.S. data

Gold prices trimmed gains on Wednesday, as investors digested a flurry of mixed U.S. economic data. Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1, 244.00 a troy ounce during U.S. morning trade, up 0.2%. Comex gold prices held in a range between USD1, 240.95 a troy ounce and USD1, 254.10 a troy ounce. The February contract ended little changed on Tuesday to settle at USD1, 241.50 a troy ounce. Gold futures were likely to find support at USD1, 226.40 a troy ounce, the low from November 25 and resistance at USD1, 257.85, the high from November 25. The University of Michigan said its index of overall consumer sentiment was revised up to 75.1 in November from a preliminary estimate of 72.0. Economists had expected the index to be revised up to 73.5. The report was released two days in advance due to the U.S. Thanksgiving holiday on Thursday. A separate report showed that manufacturing activity in the Chicago-area expanded at a faster rate than expected in November. Earlier Wednesday, the Department of Labor said the number of individuals filing for initial jobless benefits last week declined by 10,000 to a two month low of 316,000. Economists had forecast an increase of 4,000. The jobs data was released one day early due to the U.S. holiday.

Gold dips as U.S. confidence report bolsters dollar

Gold prices edged lower on Wednesday after an upbeat U.S. consumer sentiment report prompted investors to take up dollar positions on sentiments the Federal Reserve remains on track to begin scaling back monetary stimulus programs in early 2014. Stimulus tools such as the Fed's USD85 billion in monthly bond purchases aim to drive recovery by pushing down long-term

interest rates, weakening the dollar in the process. Gold and the dollar tend to trade inversely with one another. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1, 239.00 during U.S. afternoon hours, down 0.20%. Gold prices hit a session low of USD1, 237.50 a troy ounce and high of USD1, 254.10 a troy ounce. Gold futures were likely to find support at USD1, 227.45 a troy ounce, Monday's low, and resistance at USD1, 257.85, Monday's high. The February contract settled down 0.24% at USD1, 241.60 a troy ounce on Monday. The dollar saw support earlier after the University of Michigan said its index of overall consumer sentiment was revised up to 75.1 in November from a preliminary estimate of 72.0. Economists had expected the index to be revised up to 73.5. The report was released two days in advance due to the U.S. Thanksgiving holiday on Thursday.

Gold prices steady to higher in Asia trade ahead of U.S. holiday

Gold prices traded steady to higher in early Asian trade on Thursday with buying on a dip overnight after upbeat U.S. consumer sentiment pushed the dollar higher and in thin dealing ahead of the U.S. Thanksgiving holiday with markets there closed. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1, 237.60 a troy ounce, up 0.01%. Overnight, the dollar saw support earlier after the University of Michigan said its index of overall consumer sentiment was revised up to 75.1 in November from a preliminary estimate of 72.0. Economists had expected the index to be revised up to 73.5. Also on Wednesday, the Department of Labor said the number of individuals filing for initial jobless benefits last week declined by 10,000 to a two-month low of 316,000. Economists had forecast an increase of 4,000. The upbeat data offset a report showing that U.S. durable goods orders fell 2% in October, worse than expectations for a 1.9% decline, while core durable goods orders were down 0.1%, compared to expectations for a 0.5% increase.

Gold prices inch lower on Fed taper concerns

Gold prices inched lower in quiet trade on Thursday, amid ongoing expectations the Federal Reserve will begin unwinding its stimulus programs in the coming months. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1, 240.60 a troy ounce during European morning trade, down 0.1%. Comex gold prices held in a tight range between USD1, 234.70 a troy ounce and USD1, 241.90 a troy ounce. The February contract settled 0.29% lower on Wednesday to end at USD1, 237.90 a troy ounce. Comex gold fell to a four-and-a-half-month low of USD1, 226.40 a troy ounce earlier in the week. Gold futures were likely to find support at USD1, 226.40 a troy ounce, the low from November 25 and resistance at USD1, 258.20, the high from November 26. Gold prices were pressured on Wednesday after upbeat U.S. employment and consumer confidence data fuelled expectations the Fed will start to taper its stimulus program at one of its next few meetings. Prices of the precious metal are down approximately 26% this year on concerns the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.

WWW.MTECHTIPS.COM 07489294118-119