Investing.com - Gold futures pared gains on Thursday, but remained well-supported near the highest level since mid-November as sentiment on the precious metal improved after breaking through a key resistance level on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,776.25 a troy ounce during U.S. morning trade, gaining 0.28%.
It earlier rose by as much as 0.65% to trade at USD1,786.45 a troy ounce, the highest since November 15.
Futures were likely to find support at USD1,750.85 a troy ounce, Wednesday’s low and resistance at USD1,796.45, the high from November 14.
Gold prices came off their highs as the euro trimmed gains against the U.S. dollar, pulling back from a ten-week high, while the dollar index moderated early losses as a downbeat assessment of the outlook for growth in the euro zone offset better-than-expected data on German business climate.
Prices remain supported after prices broke above a key technical resistance level close to USD1,765 an ounce on Wednesday, indicating an upward momentum in prices.
Meanwhile, the international tensions over Iran's nuclear program and the subsequent rise in oil prices to nine-month highs are also supporting gold prices.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Also supporting sentiment, the New York Times reported that Greece’s lenders may have the right to seize the Bank of Greece’s gold reserves.
The Reuters Global Gold Forum confirmed that in the small print of the Greek bailout is a provision for Greece’s creditors to seize the country’s national gold reserves.
Some analysts attributed the sharp upward move to growing expectations for further monetary easing measures from global central banks.
Gold prices received a strong lift last month after the Federal Reserve pledged to push back the timing of a possible interest rate increase until late 2014 and indicated that the bank may embark on a third round of quantitative easing.
Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies and boost inflation.
Wall Street investment bank Goldman Sachs remains bullish on the precious metal. In a report published Wednesday, the bank said that in the longer term, gold is expected to continue benefiting from low U.S. interest rates, central bank buying and strong demand from key markets like China.
"Consequently, we expect gold prices to continue to rise through 2012, reaching USD1,940 an ounce in 12 months, and we continue to recommend a long gold position," the bank said.
Elsewhere on the Comex, silver for March delivery rallied 1.65% to trade at a three-month high of USD34.82 a troy ounce, while copper for March delivery tumbled 1.3% to trade at USD3.783 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,776.25 a troy ounce during U.S. morning trade, gaining 0.28%.
It earlier rose by as much as 0.65% to trade at USD1,786.45 a troy ounce, the highest since November 15.
Futures were likely to find support at USD1,750.85 a troy ounce, Wednesday’s low and resistance at USD1,796.45, the high from November 14.
Gold prices came off their highs as the euro trimmed gains against the U.S. dollar, pulling back from a ten-week high, while the dollar index moderated early losses as a downbeat assessment of the outlook for growth in the euro zone offset better-than-expected data on German business climate.
Prices remain supported after prices broke above a key technical resistance level close to USD1,765 an ounce on Wednesday, indicating an upward momentum in prices.
Meanwhile, the international tensions over Iran's nuclear program and the subsequent rise in oil prices to nine-month highs are also supporting gold prices.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Also supporting sentiment, the New York Times reported that Greece’s lenders may have the right to seize the Bank of Greece’s gold reserves.
The Reuters Global Gold Forum confirmed that in the small print of the Greek bailout is a provision for Greece’s creditors to seize the country’s national gold reserves.
Some analysts attributed the sharp upward move to growing expectations for further monetary easing measures from global central banks.
Gold prices received a strong lift last month after the Federal Reserve pledged to push back the timing of a possible interest rate increase until late 2014 and indicated that the bank may embark on a third round of quantitative easing.
Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies and boost inflation.
Wall Street investment bank Goldman Sachs remains bullish on the precious metal. In a report published Wednesday, the bank said that in the longer term, gold is expected to continue benefiting from low U.S. interest rates, central bank buying and strong demand from key markets like China.
"Consequently, we expect gold prices to continue to rise through 2012, reaching USD1,940 an ounce in 12 months, and we continue to recommend a long gold position," the bank said.
Elsewhere on the Comex, silver for March delivery rallied 1.65% to trade at a three-month high of USD34.82 a troy ounce, while copper for March delivery tumbled 1.3% to trade at USD3.783 a pound.