Investing.com - Gold prices firmed in U.S. trading on Wednesday after soft German business confidence data prompted a growing number of market participants to take up positions in the yellow metal amid building speculation of a European Central Bank rate cut.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.03% at USD1,423.25 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,411.65 and down from a high of USD1,432.65 a troy ounce.
Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high.
In Europe earlier, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March.
Analysts had expected the index to tick down to 106.2.
The numbers trailed weaker-than-expected industrial and service-sector output figures in Germany and for the broader eurozone as a whole and fanned talk of a European Central Bank move to cut interest rates.
The European Central Bank will hold a monetary policy meeting on May 2.
Rate cuts weaken paper currencies and make gold an attractive hedge.
Physical demand for the precious metal pushed prices higher as well.
Elsewhere on the Comex, silver for May delivery was up 0.07% at USD22.833 a troy ounce, while copper for May delivery was up 2.15% and trading at USD3.159 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.03% at USD1,423.25 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,411.65 and down from a high of USD1,432.65 a troy ounce.
Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high.
In Europe earlier, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March.
Analysts had expected the index to tick down to 106.2.
The numbers trailed weaker-than-expected industrial and service-sector output figures in Germany and for the broader eurozone as a whole and fanned talk of a European Central Bank move to cut interest rates.
The European Central Bank will hold a monetary policy meeting on May 2.
Rate cuts weaken paper currencies and make gold an attractive hedge.
Physical demand for the precious metal pushed prices higher as well.
Elsewhere on the Comex, silver for May delivery was up 0.07% at USD22.833 a troy ounce, while copper for May delivery was up 2.15% and trading at USD3.159 a pound.