Investing.com - Gold futures pared gains on Wednesday, easing off a four-week high as the U.S. dollar re-approached a 16-month high against the euro, dampening the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,637.75 a troy ounce during early U.S. morning trade, gaining 0.38%.
It earlier rose by as much as 1.02% to trade at USD1,647.85 a troy ounce, the highest since December 13.
Gold futures were likely to find support at USD1,612.35 a troy ounce, the previous day’s low and resistance at USD1,681.55, the high of December 13.
Gold prices came off their earlier highs as the U.S. dollar extended gains against the euro after ratings agency Fitch said that the European Central Bank should do more to avoid a 'cataclysmic' collapse of the single currency.
Markets were also jittery ahead of Thursday’s ECB policy meeting and government bond auctions by Spain and Italy later in the week.
Adding to fears over the region’s financial crisis, bank deposits at the European Central Bank's overnight facility hit yet another all-time high on Tuesday, underscoring the unwillingness of European lenders to lend to each other.
The news saw risk aversion sharpen, boosting demand for the safe haven U.S. dollar. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.6% to trade at 81.65.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s ongoing debt crisis has done little to bolster appetite for the precious metal. A weakening euro and stronger dollar have weighed on gold instead.
Gold prices were boosted during the Asian trading session after official data showed that China’s gold imports from Hong Kong surged to a record in November, as consumers bought the precious metal before the Lunar New Year, which falls on January 23.
Mainland China bought 102,779 kilograms from Hong Kong in November, up from 86,299 kilograms in October.
Elsewhere on the Comex, silver for March delivery jumped 1.15% to trade at USD30.16 a troy ounce, while copper for March delivery rose 0.6% to trade at USD3.533 a pound.
The U.S. Mint said earlier that it sold 3.96 million ounces of American Eagle silver coins so far in January, more than the combined sales in the previous two months.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,637.75 a troy ounce during early U.S. morning trade, gaining 0.38%.
It earlier rose by as much as 1.02% to trade at USD1,647.85 a troy ounce, the highest since December 13.
Gold futures were likely to find support at USD1,612.35 a troy ounce, the previous day’s low and resistance at USD1,681.55, the high of December 13.
Gold prices came off their earlier highs as the U.S. dollar extended gains against the euro after ratings agency Fitch said that the European Central Bank should do more to avoid a 'cataclysmic' collapse of the single currency.
Markets were also jittery ahead of Thursday’s ECB policy meeting and government bond auctions by Spain and Italy later in the week.
Adding to fears over the region’s financial crisis, bank deposits at the European Central Bank's overnight facility hit yet another all-time high on Tuesday, underscoring the unwillingness of European lenders to lend to each other.
The news saw risk aversion sharpen, boosting demand for the safe haven U.S. dollar. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.6% to trade at 81.65.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s ongoing debt crisis has done little to bolster appetite for the precious metal. A weakening euro and stronger dollar have weighed on gold instead.
Gold prices were boosted during the Asian trading session after official data showed that China’s gold imports from Hong Kong surged to a record in November, as consumers bought the precious metal before the Lunar New Year, which falls on January 23.
Mainland China bought 102,779 kilograms from Hong Kong in November, up from 86,299 kilograms in October.
Elsewhere on the Comex, silver for March delivery jumped 1.15% to trade at USD30.16 a troy ounce, while copper for March delivery rose 0.6% to trade at USD3.533 a pound.
The U.S. Mint said earlier that it sold 3.96 million ounces of American Eagle silver coins so far in January, more than the combined sales in the previous two months.