Gold gains despite soaring U.S. equities

Investing.com - Gold futures are trading higher in the early part of Wednesday’s Asian session, indicating that the yellow metal’s safe-haven status is not acting as a thorn in its side despite a surging U.S. equity market.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose 0.22% to USD1,1578.30 per troy ounce in Asian trading Wednesday. Gold settled up 0.06% at USD1,573.40 a troy ounce in U.S. trading on Tuesday.

Gold futures were likely to test support USD1,568.80 a troy ounce, Monday's low, and resistance at USD1,619.40, last Tuesday's high.

Even as the Dow Jones Industrial Average jumped to a record high, gold was supported by one solid U.S. data point. In U.S. economic news, the Institute for Supply Management said its February purchasing managers index rose to 56% from 55.2% in January. Economists expected the February reading to be unchanged from the prior month. The index has risen for 39 consecutive months.

Still, withdrawals from the SPDR Gold Shares, the world’s largest exchange traded fund backed by holdings of physical gold, have reached a tenth consecutive day. The fund saw its largest ever monthly outflow in February.

Elsewhere, platinum metals surged on news of more labor unrest in South Africa. In Asian trading, platinum for April delivery is higher by 0.79% at USD1,601.30 per ounce while palladium for June delivery is higher by 1.13% at USD745.20 per ounce. South Africa is the world’s largest platinum-producing nation and the second-largest palladium producer behind Russia.

Lonmin, the world’s third-largest platinum miner, confirmed Tuesday that thousands of its workers are on illegal strike.

Meanwhile, Comex silver for May delivery rose 0.84% to USD28.845 per ounce while copper for May delivery added 0.53% to USD3.539 per ounce.