Investing.com - Gold futures fell Friday on mixed economic signals, a stronger U.S. dollar and end of week profit taking in the yellow metal
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,712.35 a troy ounce during U.S. morning trade, giving back 0.60%.
It earlier hit a session high of USD1725,15 a troy ounce and a low of USD1706.65 a troy ounce.
Futures were likely to find support at USD1,689.95 a troy ounce, Wednesday’s low and a five-week low and resistance at USD1,792.15, Wednesday’s high and the highest since November.
Gold traders continued to rebalance their portfolios after prices plunged by 5% on Wednesday, or nearly USD80 per ounce, its largest one-day loss since December 2008.
Creating tension in the market, the International Swaps and Derivatives Association is considering triggering Greek credit default swap payouts due to collective action clauses.
Despite ruling the European Central Bank’s exchange for Greek bonds for new securities, exempt from private investor losses, did not trigger the CDS payouts on Thursday.
Policy makers including former ECB President Jean Claude Trichet have spoken out against paying the swap contracts due to worries that traders would be encouraged to bet against failing nations thus worsen the euro zone crisis.
Supporting gold, euro zone producer price inflation climbed more than expected to a seasonally adjusted 0.7% last month from -0.2% the preceding month.
Analysts had forecast euro zone PPI to only rise to 0.5% last month.
Meanwhile, at the European Leaders summit in Brussels, euro zone heads declared a turning point in the debt crisis.
The leaders agreed that given the Greek aid package being started and a potential euro zone recession, its time to focus on a pro growth agenda despite the deficit control treaty signed today.
EU President Herman Van Rompuy stated, “Targets on deficits are intermediate targets, no aim in itself. The restoration of confidence in the future of the euro zone will lead to economic growth. That is our ultimate objective.”
German Chancellor, Angela Merkel, changed her stance on slowing down payment for the EUR500 billion permanent rescue fund to speeding up the payments at the summit.
Known as the European Financial Stability Facility, the permanent fund will go into operation in July.
The U.S. dollar traded higher against its major counterparts with the Dollar Index trading higher by 0.67% to 79.36.
Elsewhere on the Comex, silver for May delivery gave back 2.08% to trade at USD34.92 a troy ounce, while copper for May delivery slipped 0.39% to trade at USD3.92 a pound.
Silver prices plummeted nearly 7% on Wednesday, but futures are still up almost 20% since the start of 2012.
The volatile movement in silver prices added to speculation that big Wall Street banks have been suppressing the price of silver through short-selling.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,712.35 a troy ounce during U.S. morning trade, giving back 0.60%.
It earlier hit a session high of USD1725,15 a troy ounce and a low of USD1706.65 a troy ounce.
Futures were likely to find support at USD1,689.95 a troy ounce, Wednesday’s low and a five-week low and resistance at USD1,792.15, Wednesday’s high and the highest since November.
Gold traders continued to rebalance their portfolios after prices plunged by 5% on Wednesday, or nearly USD80 per ounce, its largest one-day loss since December 2008.
Creating tension in the market, the International Swaps and Derivatives Association is considering triggering Greek credit default swap payouts due to collective action clauses.
Despite ruling the European Central Bank’s exchange for Greek bonds for new securities, exempt from private investor losses, did not trigger the CDS payouts on Thursday.
Policy makers including former ECB President Jean Claude Trichet have spoken out against paying the swap contracts due to worries that traders would be encouraged to bet against failing nations thus worsen the euro zone crisis.
Supporting gold, euro zone producer price inflation climbed more than expected to a seasonally adjusted 0.7% last month from -0.2% the preceding month.
Analysts had forecast euro zone PPI to only rise to 0.5% last month.
Meanwhile, at the European Leaders summit in Brussels, euro zone heads declared a turning point in the debt crisis.
The leaders agreed that given the Greek aid package being started and a potential euro zone recession, its time to focus on a pro growth agenda despite the deficit control treaty signed today.
EU President Herman Van Rompuy stated, “Targets on deficits are intermediate targets, no aim in itself. The restoration of confidence in the future of the euro zone will lead to economic growth. That is our ultimate objective.”
German Chancellor, Angela Merkel, changed her stance on slowing down payment for the EUR500 billion permanent rescue fund to speeding up the payments at the summit.
Known as the European Financial Stability Facility, the permanent fund will go into operation in July.
The U.S. dollar traded higher against its major counterparts with the Dollar Index trading higher by 0.67% to 79.36.
Elsewhere on the Comex, silver for May delivery gave back 2.08% to trade at USD34.92 a troy ounce, while copper for May delivery slipped 0.39% to trade at USD3.92 a pound.
Silver prices plummeted nearly 7% on Wednesday, but futures are still up almost 20% since the start of 2012.
The volatile movement in silver prices added to speculation that big Wall Street banks have been suppressing the price of silver through short-selling.