Gold manages to stay near $1,202 an ounce
Bullion prices ended lower on Tuesday, 31 December 2013, the last trading day of CY 2013. Gold futures settled slightly lower on Tuesday, snapping a 12-year winning streak for the precious metal. U.S. gold futures nearly got mugged again on the final day of 2013 but managed to fight back and hold their ground - finishing mostly steady and just above the $1,200-an-ounce area.
Gold for February delivery fell $1.50, or 0.1%, to settle at $1,202.30 an ounce on the New York Mercantile Exchange. For the year, gold fell 28%, its worst year in about three decades.
March silver futures shed 24 cents, or 1.3%, to settle at $19.37 an ounce. For the year, silver futures measured by the continuous contract have plunged nearly 36%. This year's losses for gold and silver futures are the worst since at least 1984.
Gold futures have plummeted on expectations and the final December announcement that the Federal Reserve would begin to pare back on its monetary stimulus. The Fed is set to reduce its monthly bond purchases to $75 billion in January from $85 billion. Those purchases, which could come to an end by late 2014, have helped support gold prices. Plus, investors have grown less worried about run-away global inflation and have flocked to a roaring stock market.
Today's economic data at Wall Street featured three reports. The October Case-Shiller 20-city Home Price Index rose 13.6% while a 13.8% increase had been expected by the consensus. This follows the previous month's increase of 13.2%. The Chicago PMI reading for December dropped to 59.1 from 63.0 while the consensus expected a decline to 60.0. The reported decrease was not too concerning given that readings above 60.0 are not sustainable for a long time. Production growth slowed as the related index fell to 57.9 from 64.3. The weakness stemmed from a softening in new orders growth, from 68.8 in November to 60.7 in December.
Separately, the December Consumer Confidence Index increased to 78.1 from 72.0 while the consensus expected an increase to 77.1. Although the index posted a solid increase, the jump was a result of consumer attitudes returning to pre-government shutdown levels. In reality, confidence levels have essentially held steady since late summer.
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