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Gold shoots higher in Asia, builds on Friday’s gains

Published 06/30/2013, 08:19 PM
Updated 06/30/2013, 08:20 PM
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Investing.com - Following some end of quarter short covering that boosted gold futures last Friday, the yellow soared in the early part of Monday’s Asian session as traders continued to look for bargains among precious metals.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery climbed 1.04% to USD1,236.45 per troy ounce in Asian trading Monday after settling up 1.12% at USD1,225.15 a troy ounce in U.S. trading on Friday,

Even with Friday’s strong showing, gold plunged 4.8% last week and finished the second quarter with its worst quarterly loss since 1968.

Gold futures were likely to find support at USD1,180.35 a troy ounce, Friday’s low and a 24-month low and resistance at USD1,210.90, the high from August 6, 2010.

For the quarter, the precious metal declined nearly 23%, the largest quarterly loss on record, amid speculation the Fed will start to unwind its bond purchasing program in the coming months. Gold prices are on track to post a loss of 27% on the year, the worst yearly decline since 1981, after rising in each of the past 12 years.

Gold rallied last Friday as stocks sagged despite some decent U.S. data points. In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan's final reading on June U.S. consumer sentiment was 84.1, well above the initial reading of 82.7. Economists expected a final June reading of 82.8.

Chicago are PMI fell to a 51.6 reading from 58.7 in May. Economists expected a June reading of 55. Readings above 50 indicate expansion.

Elsewhere, Comex silver for September delivery rallied 1.84% to USD19.828 per ounce while copper for September delivery was flat at USD3.058 per oucne.


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