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Gold futures slide amid continued exodus to dollar

Published 12/14/2011, 09:05 PM
Updated 12/14/2011, 09:10 PM
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Investing.com - Gold prices were off in Aisan early Thursday in declining but steady trading after a global rush to the safety of the dollar punished the precious metal in U.S. trading.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,575.75 a troy ounce during Asian trading, down 0.70%.      

Gold futures were likely to test support at USD1,567.05 a troy ounce, Thursday's low, and resistance at USD1,681.55, Tuesday's high.

Days after European nations agreed to better coordinate their fiscal policies, nerves began to fray in sovereign debt markets over how the region would keep periphery nations from defaulting in the near future and taking down the currency zone in their wake.

Fears that many sovereign bonds in Europe may suffer downgrades fueled the rush to the dollar as well.

Such jitters seriously weakened the euro, which sparked a run to the dollar and in the process investors sold gold to buy greenbacks.

Elsewhere on the Comex, silver futures for March delivery were up 0.46% and trading at USD29.068 a troy ounce, while copper futures for March was up 0.64% at USD3.293 a pound.





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