Gold futures traded lower after US GDP report

Gold futures deleted gains and traded lower on Wednesday, as official data showed that the US economy grew more than expected in 2012’s second quarter, soothing concerns over the country’s economic outlook.

Investors looked ahead to the Federal Reserve’s policy statement due later in the trading session.

On the New York Mercantile Exchange Comex division, gold futures for December delivery traded at 1,323.55 USD a troy ounce during US trading hours, down 0.1%.

Comex gold increased 1.1% earlier in the session and hit a session high of 1,339.15 USD a troy ounce. The December contract decreased 0.35% at 1,324.80 USD a troy ounce on Tuesday.

Gold futures were expected to find support at 1,308.75 USD a troy ounce and resistance at 1,347.85 USD.

The Bureau of Economic Analysis reported today that gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, higher than expectations for a 1% growth.  The data revealed that personal consumption increased 1.8% in the second quarter, higher than expectations for 1.6% growth.

The GDP report came after payroll processing firm ADP claimed non-farm private employment increased by a seasonally adjusted 200,000 in July, higher than expectations for an increase of 180,000.

Market investors are looking ahead to the Fed’s upcoming policy statement due later today, hoping that the central bank will offer more clues on when it may slow the pace of its monthly bond purchases.

Changes in the gold price this year have largely tracked changing expectations regarding whether the US central bank would end its quantitative easing program earlier than expected.

Silver for September delivery was almost unchanged and traded at 19.69 USD a troy ounce, while copper for September delivery soared 1.1% and traded at 3.075 USD a pound. Copper edged higher on hopes policy makers in China will present fresh easing measures to encourage growth in the world’s second largest economy.

FacebookTwitterGoogle+LinkedIntumblrStumbleUponPinterestDiggRedditEmail

Leave a Reply