Investing.com - Gold futures followed equities solidly higher Thursday, despite a disappointing Italian bond auction, on euro zone stimulus hopes.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,679.15 a troy ounce during U.S. trade, bouncing 1.14%.
It earlier fell by as much 0.25% to trade at a session low of USD1,655.75 a troy ounce.
Gold futures were likely to find support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,685.25, the high from April 2.
The June contract dropped to the lowest levels of the session after Italy's Treasury sold EUR2.88 billion of three-year bonds, less than the targeted amount of EUR3 billion.
Yields on the three-year bonds rose to 3.89%, the highest since mid-January, and up sharply from 2.76% at a similar auction last month.
On Wednesday, Italy saw its one-year borrowing costs rise for the first time since November, in a poorly received government bond auction.
Bond auctions have been key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Investors were also monitoring Spain’s debt woes amid concerns it will be the next euro zone member to require a bailout.
However supporting gold prices Wednesday, European Central Bank Executive Board member Benoit Coeure said that the central bank still had its bond-buying program available as an option to ease pressure on the Spanish bond market.
This hint of further euro zone monetary stimulus acted as the catalyst to send gold higher on the session, despite the early sell off.
Helping push gold higher, the U.S. dollar fell against its major counterparts giving back 0.72% to 79.38.
.
Elsewhere on the Comex, silver for May delivery surged 3.15% to trade at USD32.53 a troy ounce, while copper for May delivery advanced 2.19% to trade at USD3.72 a pound.
Copper traders were eyeing the release of Chinese first quarter gross domestic product figures on Friday.
Weighing on the base metals, the World Bank was the latest to cut China’s growth figures, saying it expected the Asian nation to grow at a rate of 8.2% this year, down from a January projection of 8.4%
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,679.15 a troy ounce during U.S. trade, bouncing 1.14%.
It earlier fell by as much 0.25% to trade at a session low of USD1,655.75 a troy ounce.
Gold futures were likely to find support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,685.25, the high from April 2.
The June contract dropped to the lowest levels of the session after Italy's Treasury sold EUR2.88 billion of three-year bonds, less than the targeted amount of EUR3 billion.
Yields on the three-year bonds rose to 3.89%, the highest since mid-January, and up sharply from 2.76% at a similar auction last month.
On Wednesday, Italy saw its one-year borrowing costs rise for the first time since November, in a poorly received government bond auction.
Bond auctions have been key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Investors were also monitoring Spain’s debt woes amid concerns it will be the next euro zone member to require a bailout.
However supporting gold prices Wednesday, European Central Bank Executive Board member Benoit Coeure said that the central bank still had its bond-buying program available as an option to ease pressure on the Spanish bond market.
This hint of further euro zone monetary stimulus acted as the catalyst to send gold higher on the session, despite the early sell off.
Helping push gold higher, the U.S. dollar fell against its major counterparts giving back 0.72% to 79.38.
.
Elsewhere on the Comex, silver for May delivery surged 3.15% to trade at USD32.53 a troy ounce, while copper for May delivery advanced 2.19% to trade at USD3.72 a pound.
Copper traders were eyeing the release of Chinese first quarter gross domestic product figures on Friday.
Weighing on the base metals, the World Bank was the latest to cut China’s growth figures, saying it expected the Asian nation to grow at a rate of 8.2% this year, down from a January projection of 8.4%