Investing.com - Gold prices fell in Asian trading Wednesday, as investors sold the precious metal for dollars in a session marked by decreasing appetite for risk on concerns that the European debt crisis was awakening from a recent slumber and headed for Spain.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.24% at USD1,656.65 a troy ounce in Asian trading on Wednesday.
Gold futures were likely to test support at USD1633.05 a troy ounce, Tuesday's low, and resistance at USD1,682.65, the high from April 3.
Gloomy jobs data out of the U.S. last Friday revealed the economy there added a net 120,000 nonfarm payrolls in March, numbers that were well below the range of most market expectations and kindling for rising gold prices.
The figures fueled sentiments that the Federal Reserve may consider stimulating the economy by buying bonds from banks, known as quantitative easing, under which the Fed pumps liquidity into the economy in a way that weakens the dollar in exchange for increased job creation.
Liquidity injections also spur inflationary pressures, which also serves as fuel for rising gold prices.
However, muted comments on monetary policy matters from Federal Reserve officials appearing in public since Friday, including Fed Chairman Ben Bernanke himself, have sent investors stocking back up on dollar positions and selling gold.
Gold did see some support in earlier trading on sentiment that physical demand would be on the rise in India, where a jewelers' strike recently ended, although that sentiment later tapered off.
Furthermore, reports that the yield on Spain’s 10-year government bonds rose to 5.9% from 5.8% earlier in Europe fueled already growing fears the country will be the next in the eurozone in need of a bailout.
Investor sentiment is falling in the entire in eurozone as well.
Market research group Sentix said its index of investor confidence declined by 6.5 points to -14.7 in April from March’s reading of -8.2.
European debt jitters sparked demand for dollars, which sent gold ultimately falling.
Elsewhere on the Comex, silver for May delivery was down 0.61% and trading at USD31.485 a troy ounce, while copper for May delivery was down 0.05% and trading at USD3.652 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.24% at USD1,656.65 a troy ounce in Asian trading on Wednesday.
Gold futures were likely to test support at USD1633.05 a troy ounce, Tuesday's low, and resistance at USD1,682.65, the high from April 3.
Gloomy jobs data out of the U.S. last Friday revealed the economy there added a net 120,000 nonfarm payrolls in March, numbers that were well below the range of most market expectations and kindling for rising gold prices.
The figures fueled sentiments that the Federal Reserve may consider stimulating the economy by buying bonds from banks, known as quantitative easing, under which the Fed pumps liquidity into the economy in a way that weakens the dollar in exchange for increased job creation.
Liquidity injections also spur inflationary pressures, which also serves as fuel for rising gold prices.
However, muted comments on monetary policy matters from Federal Reserve officials appearing in public since Friday, including Fed Chairman Ben Bernanke himself, have sent investors stocking back up on dollar positions and selling gold.
Gold did see some support in earlier trading on sentiment that physical demand would be on the rise in India, where a jewelers' strike recently ended, although that sentiment later tapered off.
Furthermore, reports that the yield on Spain’s 10-year government bonds rose to 5.9% from 5.8% earlier in Europe fueled already growing fears the country will be the next in the eurozone in need of a bailout.
Investor sentiment is falling in the entire in eurozone as well.
Market research group Sentix said its index of investor confidence declined by 6.5 points to -14.7 in April from March’s reading of -8.2.
European debt jitters sparked demand for dollars, which sent gold ultimately falling.
Elsewhere on the Comex, silver for May delivery was down 0.61% and trading at USD31.485 a troy ounce, while copper for May delivery was down 0.05% and trading at USD3.652 a pound.