Gold fails to hold its price above the $1,200 level
Bullion prices ended higher at Comex on Tuesday, 25 November 2014 at Comex. Gold futures settled slightly higher on Tuesday, yet couldn't hold its price above the $1,200 level that many traders have watched carefully. The U.S. dollar index hovering near a four-year high continues to provide a bearish anchor for the precious metals.
December gold futures settled up by $1.40, or 0.1%, at $1,197.10 an ounce, after briefly punching above the $1,200 mark.
December silver settled higher by 17 cents, or 1%, at $16.55 an ounce.
The yellow metal briefly slumped in the wake of a better-than-anticipated reading on U.S. economic growth that appeared to dampen demand for the haven asset. However, the metal recovered after consumer confidence unexpectedly retreated in November, signaling that consumers are less optimistic about the economy.
There was a heavier slate of U.S. economic data released Tuesday, highlighted by the second-quarter report on gross domestic product. The GDP report came in at up 3.9%, on an annual basis, which was well above market expectations for a rise of 3.3%. G
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Other U.S. data released Tuesday included the U.S. house price indexes, the Richmond Fed business survey, and the S&P/Case-Shiller home price index. The Richmand Fed survey came in on the weak side of expectations, which on this day somewhat offset the stronger GDP report.
U.S. markets activity is likely to start to wind down on Wednesday, ahead of the Thanksgiving holiday on Thursday. Typically, Friday finds one of the lightest-volume trading days of the year for U.S. markets.
In overnight news the OECD again warned that economic stagnation in the European Union is problematic for the entire global economic system. The OECD urged the European Central Bank to enact still more monetary policy stimulus measures.
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