Investing.com - Gold futures rallied for a third day on Wednesday, trading at the highest level in nearly two weeks as a combination of growing geopolitical tensions between Iran and the West as well as expectations of further monetary easing in the U.S. drove prices higher.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,613.85 a troy ounce during early European morning trade, climbing 0.83%.
It earlier rose by as much as 0.9% to trade at USD1,614.65 a troy ounce, the highest since December 22.
Gold futures were likely to find support at USD1,572.65 a troy ounce, the previous day’s low and resistance at USD1,643.65, the high of December 21.
Gold’s safe haven appeal was boosted after Iran’s military chief Ataollah Salehi warned the U.S. against sending an aircraft carrier back to the Persian Gulf.
The warning came after Iranian media outlets reported that the country had produced its first nuclear fuel rod. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.
Gold prices found further support after crude oil futures spiked above USD103 a barrel on the New York Mercantile Exchange, hovering just below an eight-month high.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Meanwhile, in the minutes of its December policy setting meeting, the Federal Reserve said that “current and prospective economic conditions could well warrant additional policy accommodation”, fuelling hopes the Fed will embark on a fresh round of monetary easing.
Gold futures rallied the most in ten weeks on Tuesday as encouraging economic data from the U.S., Germany and China renewed optimism in the global economic outlook and sparked a broad-based rally in the commodities complex.
Wall Street investment firm Merrill Lynch said Tuesday that it expects gold prices to average USD1,850 an ounce in 2012, representing a 17.6% increase over the 2011 spot price average.
Elsewhere on the Comex, silver for March delivery eased down 0.1% to trade at USD29.55 a troy ounce, while copper for March delivery fell 0.95% to trade at USD3.495 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,613.85 a troy ounce during early European morning trade, climbing 0.83%.
It earlier rose by as much as 0.9% to trade at USD1,614.65 a troy ounce, the highest since December 22.
Gold futures were likely to find support at USD1,572.65 a troy ounce, the previous day’s low and resistance at USD1,643.65, the high of December 21.
Gold’s safe haven appeal was boosted after Iran’s military chief Ataollah Salehi warned the U.S. against sending an aircraft carrier back to the Persian Gulf.
The warning came after Iranian media outlets reported that the country had produced its first nuclear fuel rod. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.
Gold prices found further support after crude oil futures spiked above USD103 a barrel on the New York Mercantile Exchange, hovering just below an eight-month high.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Meanwhile, in the minutes of its December policy setting meeting, the Federal Reserve said that “current and prospective economic conditions could well warrant additional policy accommodation”, fuelling hopes the Fed will embark on a fresh round of monetary easing.
Gold futures rallied the most in ten weeks on Tuesday as encouraging economic data from the U.S., Germany and China renewed optimism in the global economic outlook and sparked a broad-based rally in the commodities complex.
Wall Street investment firm Merrill Lynch said Tuesday that it expects gold prices to average USD1,850 an ounce in 2012, representing a 17.6% increase over the 2011 spot price average.
Elsewhere on the Comex, silver for March delivery eased down 0.1% to trade at USD29.55 a troy ounce, while copper for March delivery fell 0.95% to trade at USD3.495 a pound.