Thursday, November 21, 2013

Gold creeps higher after two-day drought

LOS ANGELES (MarketWatch) — Gold futures turned higher in electronic trade Friday, up only slightly after increased taper chatter caused a two-day dip that took prices down to levels not seen in four months.
Midday in East Asia, gold for December delivery GCZ3 +0.09%  traded 40 cents higher at $1,244.10 an ounce. December silver SIZ3 +0.26%  added 6 cents, or 0.3%, to $19.99 an ounce.
A day earlier, gold futures came under pressure when mostly upbeat U.S. economic data, particularly on the employment front, were viewed as ramping up the possibility that the Federal Reserve would cut back on its stimulus program within the next few meetings.

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“The Fed needs to normalize its book but are very concerned about interrupting the magic ride in the equity and housing sectors.,” said Kitco’s Peter Hug. “Their Fed speak is now gearing more and more to, ‘we want to taper, we need to see slightly better evidence, but don’t worry, we will keep our rates at zero, forever. So please let us begin to taper, but don’t sell your assets and don’t panic, we will hold the real rates down for you.’”
Elsewhere in metals trading Friday, January platinum PLF4 +0.27%  rose $2.40, or 0.2%, to $1,394.10 an ounce, while December palladium PAZ3 +0.48%  tacked on $1.25, or 0.2%, to $714.50 an ounce.
High-grade copper HGZ3 -0.09%  barely budged, holding steady at $3.19 a pound. 
Shawn Langlois is an editor and columnist for MarketWatch in London. Follow him on Twitter @slangwise.http://www.marketwatch.com/story/gold-creeps-higher-after-two-day-drought-2013-11-21

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