Investing.com - Gold futures traded lower in the early part of Tuesday’s Asian session as traders took profits in the yellow metal following Monday gains on news that former U.S. Treasury Secretary Larry Summers withdrew his name from consideration to be the next chairman of the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.15% to USD1,315.80 per troy ounce in Asian trading Tuesday. The December contract settled higher by 0.70% at USD1,317.80 per ounce on Monday.
Gold futures were likely to find support at USD1,304.80 a troy ounce, Friday's low, and resistance at USD1,393.80, the high from Sept. 8.
Summers was widely viewed by market participants as President Barack Obama’s first choice to lead the Fed when current Chairman Ben Bernanke retires in January. Now, the focus is on Fed Vice Chairwoman Janet Yellen as Bernanke’s likely successor.
Yellen is viewed by many as willing to keep stimulus measures in play for as long as possible in order to lower unemployment rates. Gold has been the beneficiary over the Fed's three rounds of bond purchases since the recession, which have weakened the dollar to spur recovery.
Gold was also supported by some decent U.S. data out Monday. In U.S. economic news out Monday, a report from the Federal Reserve today showed U.S. industrial production rose 0.4% last month after a flat reading in July. The August increase was the biggest in six months. Housing and automobile production paced the gains.
The New York Federal Reserve’s Empire State Manufacturing survey fell to 6.29 from 8.24 in August. Economists expected a reading of 9.20. The new orders index rose to 2.35 from 0.27 while shipments soared to 16.43, the highest level in more than a year, from 1.47. Readings above zero indicate expansion.
Elsewhere, Comex silver for December delivery slipped 0.64% to USD21.868 per ounce while copper for December delivery fell 0.06% to USD3.213.
