Gold moves lower on FOMC statement, Indian demand slowdown..
Gold futures eased lower Wednesday, as pro growth statements from the FOMC weighed on the precious metal
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,640.65 a troy ounce during U.S. trade, easing down 0.19%.
Gold futures were likely to find short-term support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,658.95, the high from April 16.
The Federal Open Market Committee stated that it expects economic growth to remain moderate over the coming quarters and then to increase gradually.
In addition, the Fed boosted its outlook for growth and is slightly more optimistic on employment adding to the gold bearish sentiment.
Gold prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead.
In other news, Indian gold demand has slipped despite the Akshaya Tritiya festival this week further adding to the worldwide bearish sentiment on the yellow matter
Elsewhere on the Comex, silver for July delivery plunged 0.84% to trade at USD30.55 a troy ounce, while copper for July delivery gained 0.63% to trade at USD3.70 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,640.65 a troy ounce during U.S. trade, easing down 0.19%.
Gold futures were likely to find short-term support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,658.95, the high from April 16.
The Federal Open Market Committee stated that it expects economic growth to remain moderate over the coming quarters and then to increase gradually.
In addition, the Fed boosted its outlook for growth and is slightly more optimistic on employment adding to the gold bearish sentiment.
Gold prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead.
In other news, Indian gold demand has slipped despite the Akshaya Tritiya festival this week further adding to the worldwide bearish sentiment on the yellow matter
Elsewhere on the Comex, silver for July delivery plunged 0.84% to trade at USD30.55 a troy ounce, while copper for July delivery gained 0.63% to trade at USD3.70 a pound.
Asad Khan
Financial Analyst (CFB) Trading Team
Financial Analyst (CFB) Trading Team
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