COZfx: Profit takers sent gold prices falling in US trading on Tuesday. Gold gained in recent sessions on predications that the Federal Reserve will stick with its ultra-loose monetary policies that weaken the dollar to spur recovery.

Coz forex senior derivatives trader Daniel • Moloney said, on the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.29% at USD1,709.45 a troy ounce in US trading, up from a session low of USD1,706.25 and down from a high of USD1,715.75 a troy ounce. Meanwhile on the Comex, silver for March delivery was down 1.24% and trading at USD32.693 a troy ounce, while copper for March delivery was down 0.55% and trading at USD3.686 a pound. The dollar continued to soften ahead of the Federal Reserve's monetary policy meeting, which opened earlier Tuesday.

Predictions continued to build that the Federal Reserve will either keep interest rates near zero and a USD40 billion bond-purchasing in place, or even consider ramping up the bond buyback program, known as quantitative easing, which weakens the dollar and holds borrowing costs down to encourage investing an hiring.

In last week, the Bureau of Labor Statistics reported that the economy added a net 146,000 nonfarm payrolls in November, up from a downwardly revised 138,000 increase during October. The headline unemployment rate falls to 7.7% in November from 7.9% in October, surpassing market calls for the figure to remain unchanged. While the numbers beat predictions for the economy to add only 93,000 payrolls, investors remained convinced the economy has not strengthened to the point the Federal Reserve will alter its currently very loose monetary policies.

Central bank demand for gold across Asia pushed prices up in recent sessions to the point profit-takers entered and sold on Tuesday. (COZ forex UK)


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