Investing.com - Gold futures erased gains on Thursday, easing off a five-week high following the release of tame U.S. inflation data and a report showing that U.S. jobless claims fell to an almost four-year low, while markets remained focused on Greece bailout talks.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,654.45 a troy ounce during early U.S. morning trade, shedding 0.33%.
It earlier rose by as much as 0.85% to trade at USD1,670.45 a troy ounce, the highest since December 13.
Gold futures were likely to find short-term support at USD1,643.15 a troy ounce, the previous day’s low and resistance at USD1,681.55, the high of December 13.
Gold prices turned lower after a report from the U.S. Labor Department showed that consumer prices were flat for the second straight month in December, reducing the appeal of the precious metal as a hedge against inflation.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell to the lowest level since April 2008. Weekly applications fell by 50,000 to 352,000, the biggest drop in the seasonally adjusted figure in more than six years.
Meanwhile, gold traders continued to monitor ongoing talks between Greek Prime Minister Lucas Papademos and the country’s creditors aimed at restructuring the country’s debt would result in a breakthrough.
Greece needs to secure an agreement on restructuring its debt in order to secure new bailout funds and avert a default when a EUR14.4 billion bond redemption comes due on March 20.
Also Thursday, auctions of Spanish and French government encountered solid investor demand, easing concerns over the ability of indebted euro zone nations to fund themselves, following Standard & Poor’s mass downgrades of euro zone nation’s last week.
On Wednesday, London-based industry group GFMS Limited said that gold prices were likely to struggle in the short term, particularly once Lunar New Year demand ebbs.
GFMS expected gold prices to average USD1,640 an ounce in the first half of 2012, before prices pick up “and power ahead to fresh all time highs” later in the year. The group cited exceptionally low interest rates, inflation concerns, potential for monetary policy easing, and “a general mistrust of fiat currencies.”
The report added that the euro zone’s debt crisis has pushed some investors to the U.S. dollar and Treasurys as “a least bad option,” but the reemergence of any talks regarding additional quantitative-easing measures, “could really fire up the gold market.”
Elsewhere on the Comex, silver for March delivery dipped 0.2% to trade at USD30.47 a troy ounce, while copper for March delivery rose 0.85% to trade at USD3.784 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,654.45 a troy ounce during early U.S. morning trade, shedding 0.33%.
It earlier rose by as much as 0.85% to trade at USD1,670.45 a troy ounce, the highest since December 13.
Gold futures were likely to find short-term support at USD1,643.15 a troy ounce, the previous day’s low and resistance at USD1,681.55, the high of December 13.
Gold prices turned lower after a report from the U.S. Labor Department showed that consumer prices were flat for the second straight month in December, reducing the appeal of the precious metal as a hedge against inflation.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell to the lowest level since April 2008. Weekly applications fell by 50,000 to 352,000, the biggest drop in the seasonally adjusted figure in more than six years.
Meanwhile, gold traders continued to monitor ongoing talks between Greek Prime Minister Lucas Papademos and the country’s creditors aimed at restructuring the country’s debt would result in a breakthrough.
Greece needs to secure an agreement on restructuring its debt in order to secure new bailout funds and avert a default when a EUR14.4 billion bond redemption comes due on March 20.
Also Thursday, auctions of Spanish and French government encountered solid investor demand, easing concerns over the ability of indebted euro zone nations to fund themselves, following Standard & Poor’s mass downgrades of euro zone nation’s last week.
On Wednesday, London-based industry group GFMS Limited said that gold prices were likely to struggle in the short term, particularly once Lunar New Year demand ebbs.
GFMS expected gold prices to average USD1,640 an ounce in the first half of 2012, before prices pick up “and power ahead to fresh all time highs” later in the year. The group cited exceptionally low interest rates, inflation concerns, potential for monetary policy easing, and “a general mistrust of fiat currencies.”
The report added that the euro zone’s debt crisis has pushed some investors to the U.S. dollar and Treasurys as “a least bad option,” but the reemergence of any talks regarding additional quantitative-easing measures, “could really fire up the gold market.”
Elsewhere on the Comex, silver for March delivery dipped 0.2% to trade at USD30.47 a troy ounce, while copper for March delivery rose 0.85% to trade at USD3.784 a pound.