On Thursday, 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.
For now, “gold’s selloff seems to be slowing around the $1,240 level, as the market may not want to get to ahead of itself regarding Fed tapering ideas,” said Jason Rotman, president of Lido Isle Advisors in Newport Beach, Calif. “We still may see a push down toward $1,225 sometime soon, especially if the early December [U.S.] jobs report is strong.”
Minutes from the Federal Reserve’s October meeting, released earlier this week, showed that officials considered going back to a calendar date to end asset purchases or setting a total size to its bond buys. The asset-purchase program has been supportive for dollar-denominated gold prices.
