Gold Dips On Fear Of Fed Taper Plan
London (Dec 3) Gold traders are looking ahead of the major economic data scheduled to release later week, with ADP private payrolls and ISM non-manufacturing numbers on Wednesday. After that, a GDP revision is due Thursday, and the closely watched non farm-payrolls report caps off the crowded calendar on Friday.
Asian stock markets mostly ended lower on Tuesday, as traders reassessed their expectations regarding the duration of the Federal Reserve's bond-buying program. Markets in Japan and China's Shanghi composite indices ended a tad up.
The Nikkei inched higher as the yen weakened against the U.S. dollar, amid ongoing expectations that the Bank of Japan will have to expand its stimulus program in order to meet its target of 2% inflation.
The Reserve Bank of Australia kept its cash rate steady at a record low 2.5% on Tuesday in its November review as expected, adding that the Australian dollar remains uncomfortably high and it would assess its outlook and adjust policy as needed.
European stock markets moved lower on Tuesday, as investors remained cautious ahead of the closely watched U.S. non farm-payrolls report at the end of the week, which could weaken or strengthen the case for the Federal Reserve to taper its asset purchases.
UK construction PMI data for November pointed to another strong upturn in the UK construction sector, with output and employment both rising at the sharpest rate since August 2007.
Eurostat said that euro area industrial producer prices fell by 0.5% in the euro area in October 2013, after surging 0.20% in September 2013. On annul basis, industrial producer prices fell by 1.4% in the euro area, after falling 0.90% in the last month.
The COMEX gold futures for February delivery trades $1,219.50, down $2.40 and March Silver contract quotes at $19.142, down 0.147 a troy ounce.
The Euro bounced back from the last two days losses with the currency currently quotes at $1.3568, up 0.20% from last close and the US dollar index quotes at 80.77, down 0.15 points from last close.
Local gold off the early high triggered by fall in the international market while weaker local currency limited the downside. The Indian rupee quotes at Rs 62.36, 0.08% weaker against the greenback from the last close.
