Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold, silver futures edge higher after previous session’s sell-off

CommoditiesApr 05, 2012 03:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Investing.com - Gold futures rose for the first time in three sessions on Thursday, as the previous day’s steep drop to a three-month low created bargain buying opportunities for investors reluctant to bet that prices would fall further.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,626.05 a troy ounce during early European trade, gaining 0.74%.      

It earlier rose by as much as 0.85% to trade at a session high USD1,628.05 a troy ounce. Gold futures fell to USD1,613.55 on Wednesday, its lowest level since January 10 and below its 50-day moving average.

Gold futures were likely to find support at USD1,606.05 a troy ounce, the low from January 9 and resistance at USD1,685.25, the high from April 2.

Trading is expected to be thin ahead of the Easter holiday. Markets in the U.S. and Europe will remain closed on Friday in observance of Good Friday. Most markets in Europe will be shut next Monday as well.

Gold futures plunged more than 4% in the two sessions leading up to Thursday, including a 3% drop on Wednesday as traders readjusted positions after minutes from the March meeting of the Federal Reserve's Open Market Committee released Tuesday indicated that the central bank was unlikely to introduce more stimulus measures to help boost the U.S. economy in the near term.

This was the second time in a month that gold has sold off in response to signals from the Fed that more easing is not guaranteed.

Gold prices dropped almost 5% in the three sessions following March’s Fed meeting after the central bank gave an upbeat assessment of the U.S. economy, which reduced expectations for a third round of monetary easing in the U.S.

Wall Street investment bank Morgan Stanley downgraded its forecast of further quantitative easing by the Federal Reserve to one-out-of-three chance from two out of three.

Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.

Attention now shifts to Friday’s U.S. non-farm payrolls data, which could shed further light on the strength of the U.S. economy and the need for further monetary easing in the U.S.

Resurfacing concerns over the euro zone’s debt crisis also added to the gloomy trade environment, after Spain’s Treasury on Wednesday auctioned EUR2.59 billon of government bonds, short of the maximum targeted amount of EUR3.5 billion, in the country’s first debt auction since last week’s austerity budget.

There have been renewed concerns of further debt contagion in the euro zone in recent weeks amid fears over the fiscal health of the region’s fourth largest economy. On Tuesday, Spain’s government announced that the country’s public debt will rise to a record 79.8% of gross domestic product this year.

Elsewhere on the Comex, silver for May delivery jumped 1.5% to trade at USD31.51 a troy ounce, while copper for May delivery added 0.35% to trade at USD3.804 a pound.

Gold, silver futures edge higher after previous session’s sell-off
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email