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Gold gains as investors seek safety ahead of ECB meeting

Published 02/06/2013, 12:41 PM
Updated 02/06/2013, 12:42 PM
Investing.com - Gold prices rose on Wednesday after investors viewed the precious metal as a safe haven asset ahead of the European Central Bank's Thursday monetary policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.28% at USD1,678.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,668.85 and down from a high of USD1,680.05 a troy ounce.

Gold futures were likely to test support USD1,658.75 a troy ounce,
Thursday's low, and resistance at USD1,685.65, Tuesday's high.

Concerns the European Central Bank may warn the European economy still faces hurdles prompted investors to ditch the euro and take up safe-haven positions in gold, especially on news that physical demand in China is on the rise.

The euro has strengthened in recent weeks, fueling fears the European Central Bank may find it tough to craft policies that both foster recovery and control inflation.

Meanwhile in Germany, government data revealed that the country's factory orders rose 0.8% in December, missing expectations for a 0.9% gain though much better than November's 1.8% contraction.

Technical buying bolstered gold prices as well.

Meanwhile on the Comex, silver for March delivery was down 0.11% and trading at USD31.840 a troy ounce, while copper for March delivery was down 0.66% and trading at USD3.745 a pound.






 

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