( From FXstreet.Com , By Tom Jennemann)
Orlando, Florida 27/01/2011 - Gold on the Comex division of the New York Mercantile Exchange touched a fresh three-month low on Thursday as disappointing unemployment and durable good numbers failed to stem the general sell-off.
Gold futures for February delivery were recently down $13.80 at $1,319.20 per ounce in New York. Trade has been in a wide-range of $1,315.70 to $1347.50.
"Overall, the market really set the tone at the beginning of the year. This is just a continuation of that sell-off. The thing about today is that we've taken out both yesterday's high and low, which is a key sign for a potential reversal tomorrow," Larry Young, president of Covenant Trading, said.
"We will probably bounce off the lows, which will set us up to be firmer going into the weekend. This is setting up to be a nice buying opportunity for bargain shoppers," Young added.
Gold fell on Thursday despite the release of some supportive macroeconomic data. Yesterday, the Federal Open Market Committee (FOMC) announced it would continue with $600 billion quantitative easing (QE2) programme and will keep interest rates at the current ultra-low levels. Soon after the FOMC statement, gold reached its intraday high of $1,347.
Gold rose briefly this morning after US weekly jobless data showed that 454,000 new claims were added, well ahead of an expected 407,000 and up from 403,000 previously. That represents the largest week-on-week rise since the start of November.
Also, US durable goods orders for December fell 2.5 percent on the previous month, which was worse than expectations for a 1.6-percent rise.
"Gold is consolidating after pretty good price reversal yesterday," said Sterling Smith, an analyst with Country Hedging.
Heavy snow overnight in New York is likely keeping some dealing desks understaffed, he added.
Gold also came under pressure as the dollar gained against the euro. The greenback was recently at 1.3693, up marginally on the day.
Comex silver for March delivery was down 26.3 cents to $26.865 per ounce. Earlier in the session, the grey metal had gone as high as $27.795.
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