Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold dips on continued global growth concerns

Published 04/15/2012, 08:41 PM
Updated 04/15/2012, 08:44 PM
GC
-
HG
-
SI
-
Investing.com - Gold prices extended Friday's losses in Asian trading on Monday, falling as demand for the metal's traditional hedge the dollar rose on concerns fresh headwinds are stirring on the horizon for the global economy.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.58% at USD1,650.65 a troy ounce in U.S. trading on Friday.

Gold futures were likely to test support at USD1633.05 a troy ounce, Tuesday's low, and resistance at USD1,681.15, Thursday's high.

Rising yields in Spanish government bond auctions are fueling more and more calls for the European Central Bank to intervene and buy the country's debt, which would ease more immediate credit concerns.

European officials are reportedly prepared to ask the International Monetary Fund to boost its war chest to contain the crisis, arguing they've made enough reform to merit more rescue funding should it be needed.

In China, the country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion, which prompted investors worldwide to snap up greenbacks early Monday, selling gold in the process.

China over the weekend widened the trading band it sets for the yuan, giving the currency a wider range to trade against the greenback, which does show Beijing has more faith in the economy.

Gold has posted major gains in recent years, and some market watchers have said they wouldn't be surprised to see the metal spend 2012 correcting.

Elsewhere on the Comex, silver for May delivery was down 0.24% and trading at USD31.315 a troy ounce, while copper for May delivery was down 0.86% and trading at USD3.586 a pound.






Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.