Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold futures hit 9-week high on emerging market woes

Published 01/27/2014, 03:25 AM
Updated 01/27/2014, 03:25 AM
Gold rallies to 9-week high as emerging market concerns linger

Gold rallies to 9-week high as emerging market concerns linger

Investing.com - Gold prices extended gains from the previous session to hit a nine-week high on Monday, as ongoing turbulence in emerging markets boosted the safe haven appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of USD1,279.20 a troy ounce, the strongest level since November 18, before trimming gains to trade at USD1,269.20 a troy ounce during European morning trade, up 0.4%.

The April contract settled 0.16% higher on Friday to end at USD1,264.50. Futures were likely to find support at USD1,230.80 a troy ounce, the low from January 23 and resistance at USD1,287.70, the high from November 18.

Ongoing turmoil in emerging markets continued to boost gold’s safe haven appeal. The precious metal rallied sharply on Friday as investors fleeing risk in emerging markets saw gold as an attractive venue.

Emerging market currencies have been hard hit since the Federal Reserve announced plans last month to begin scaling back its asset purchase program.

The Turkish lira fell to the latest in a series of record lows against the dollar on Friday, while South Africa’s rand, the Russian ruble and the Argentine peso fell to multi-year lows against the greenback.

Investors were looking ahead to the outcome of the Fed’s monthly meeting on Wednesday, amid expectations for a reduction in its bond buying program to USD65 billion from the current USD75 billion.

The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers raised their bullish bets in gold futures in the week ending January 21.

Net longs totaled 43,353 contracts as of last week, compared to 43,277 in the preceding week.

Meanwhile, silver for March delivery advanced 0.8% to trade at USD19.92 a troy ounce. Comex silver prices held in a range between UDF19.82 a troy ounce and USD20.07.

The March silver contract ended Friday’s session down 1.22% to settle at USD19.76 a troy ounce.

Elsewhere on the Comex, copper futures for March delivery fell 0.25% to trade at USD3.263 a pound, the lowest since December 10.

Copper prices remained under pressure after data last week pointed to a steeper than expected slowdown in Chinese manufacturing. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.