Breaking News

Gold prices fall on extended profit taking as Cyprus fears wane

CommoditiesApr 03, 2013 12:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Gold prices extended Tuesday's losses into Wednesday's trading session, as investors sold the precious metal for profits despite the greenback's decline.
Gold and the dollar tend to trade inversely from one another, though the metal appeared ripe for profit taking as its appeal as a hedge during the Cypriot financial crisis began to wane.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.92% at USD1,561.45 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,556.35 and down from a high of USD1,577.25 a troy ounce.
Gold futures were likely to test support USD1,554.80 a troy ounce, the low from Feb. 21, and resistance at USD1,608.85, Wednesday's high.
Gold prices dropped as the metal's appeal as a hedge to a weakening euro that grew during the Cypriot financial crisis began to wane this week.
The dollar weakened on softer-than-expected U.S. indicators that sparked talk of monetary stimulus measures staying in place for the time being, which normally sends gold prices gaining.
Investors shrugged off the data and sold gold positions anyway after concluding that prices rose to attractive levels while the precious metal became the hedge of choice the Cyprus crisis.
The Institute of Supply Management reported earlier its non-manufacturing purchasing managers' index fell to 54.4 in March from 56.0 in February.  

Analysts had expected the index to decline to 55.8 last month, which weakened the greenback.

Separate industry data revealed that the U.S. private sector added fewer jobs than expected last month.

Payroll processor ADP reported earlier that nonfarm payrolls increased by 158,000 in March, well below expectations for a gain of 200,000, following an upwardly revised increase of 237,000 in February.
The numbers sparked concerns that Friday's official March jobs report may miss earlier expectations for a pickup in job creation, which could convince U.S. monetary authorities to keep policy loose.
Elsewhere on the Comex, silver for May delivery was down 1.42% at USD26.853 a troy ounce, while copper for May delivery was down 1.41% and trading at USD3.331 a pound.

Gold prices fall on extended profit taking as Cyprus fears wane

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
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?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
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
Sign up with Email