IV:Gold prices weaken slightly in Asia on prospects for Fed tapering
Investing.com - Gold prices eased slightly in Asia Tuesday on firming expectations for the Federal Reserve 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, with talk of their dismantling strengthening the greenback. 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 USD 1,221.50 a troy ounce, down 0.03%.
The Institute for Supply Management reported that U.S. manufacturing activity in November expanded at its fastest pace since April 2011, fueling optimism for more robust economic recovery down the road.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts were expecting the index to fall to 55.0.
