Gold rises after U.S. data implies tapering could be delayed

Gold rises after U.S. data implies tapering could be delayed

Submitted by caseyb23 on Mon, 09/09/2013 - 03:55

Gold rises after U.S. data implies tapering could be delayed

Investing.com – Gold futures traded higher in the early part of Monday's Asian session after last Friday's U.S. jobs data was viewed by some traders as a sign the Federal Reserve may not be able to taper its quantitative easing program as soon as previously thought.�

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery rose 0.11% to USD1,387.70 per troy ounce in Asian trading Monday. The October contract settled up 0.99% at USD1,386.20 per ounce last Friday.�

Despite Friday's strong gains, gold prices lost 0.25% on the week, the second consecutive weekly decline. Gold futures were likely to find support at USD1,356.00 a troy ounce, the low from August 22 and resistance at USD1,415.00, the high from September 4.�

In U.S. economic news out last Friday, the U.S. Labor Department said employers in the world's largest economy added 169,000 jobs last month, below the 177,000 new jobs analysts expected. The July reading was slashed to 104,000 new jobs added from the initial estimate of 162,000.�

The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.�

The disappointing August number combined with the dramatic paring of the July reading could be a sign the Fed cannot taper its USD85 billion-per-month bond-buying program this month as so many traders expected.�

The jobs numbers also put a brighter spotlight on the next Fed meeting, which kicks-off on September 17 and concludes the following day.�

Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.�

Elsewhere, Comex silver for December delivery rose 0.22% to USD23.943 per ounce while copper for December delivery added 0.42% to USD3.274 an ounce.