IV:Gold futures plunge 2% to hit lowest since September 2010
Investing.com - Gold futures fell sharply on Wednesday, hitting the lowest level since September 2010, after a series of upbeat U.S. data releases on Tuesday reinforced the view that Federal Reserve will begin to taper its bond purchase program in the coming months.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,248.15 a troy ounce during European morning hours, down 2.1% on the day.
Comex gold prices fell by as much as 2.5% earlier in the session to hit a daily low of USD1,243.65 a troy ounce, the weakest level since September 13, 2010.
Gold futures were likely to find support at USD1,231.65 a troy ounce, the low from August 31, 2010 and resistance at USD1,310.10, the high from September 28, 2010.
U.S. consumer confidence rose to highest level since January 2008 in the current month, data on Tuesday showed, while another report showed that U.S. new home sales rose to an almost five year high May.
A separate report showed that U.S. durable goods orders rose unexpectedly in May.
Gold prices lost 6.8% last week, the worst weekly decline since September 2011, after Fed Chairman Ben Bernanke said that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up.
Later in the day, the U.S. Commerce Department is scheduled to release the third estimate of gross domestic product for the first quarter.
Elsewhere on the Comex, silver for September delivery tumbled 3.5% to trade at USD18.87 a troy ounce, the lowest level since August 25, 2010.
Meanwhile, copper for September delivery fell 1.5% to trade at USD3.029 a pound.
Copper futures fell to a three-year low of USD2.985 a pound on Tuesday, as investors remained concerns about a cash crunch in the Chinese financial system.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
