Investing.com – Gold futures were down on Wednesday, extending sharp losses from the previous session as investors continued to cash out of the market to lock in gains from a rally that took prices to a record high, while spot gold prices advanced amid strong physical demand.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,846.15 a troy ounce during late Asian trade, shedding 0.7%.
It earlier fell as much as 1.5% to trade at a daily low of USD1,827.95 a troy ounce.
Gold futures tumbled nearly 3.65% on Tuesday, the biggest one-day drop since February 2010, as strong gains on Wall Street dented the appeal of the precious metal.
Earlier Tuesday, gold futures jumped to an all-time high of USD1,917.90 a troy ounce. However, the rally prompted some investors to sell their position on profit taking and lock in gains.
Global financial service provider Credit Suisse warned on Tuesday that gold prices remain susceptible to a further correction in the short-term, “before stabilizing and resuming its uptrend”.
Strength in the U.S. dollar also weighed on prices. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to trade at 74.03.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Meanwhile, strong physical demand for the precious metal in Asia boosted spot gold prices for immediate delivery, as the previous day’s sharp drop spurred some bargain buying.
Despite the pullback, gold prices were expected to remain supported in the near term amid concerns over the euro zone’s sovereign debt crisis, while investors looked forward to a much-anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday for any hints regarding further stimulus measures.
Elsewhere on the Comex, silver for September slumped 0.65% to trade at USD42.02 a troy ounce, while copper for September delivery fell 0.72% to trade USD3.983 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,846.15 a troy ounce during late Asian trade, shedding 0.7%.
It earlier fell as much as 1.5% to trade at a daily low of USD1,827.95 a troy ounce.
Gold futures tumbled nearly 3.65% on Tuesday, the biggest one-day drop since February 2010, as strong gains on Wall Street dented the appeal of the precious metal.
Earlier Tuesday, gold futures jumped to an all-time high of USD1,917.90 a troy ounce. However, the rally prompted some investors to sell their position on profit taking and lock in gains.
Global financial service provider Credit Suisse warned on Tuesday that gold prices remain susceptible to a further correction in the short-term, “before stabilizing and resuming its uptrend”.
Strength in the U.S. dollar also weighed on prices. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to trade at 74.03.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Meanwhile, strong physical demand for the precious metal in Asia boosted spot gold prices for immediate delivery, as the previous day’s sharp drop spurred some bargain buying.
Despite the pullback, gold prices were expected to remain supported in the near term amid concerns over the euro zone’s sovereign debt crisis, while investors looked forward to a much-anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday for any hints regarding further stimulus measures.
Elsewhere on the Comex, silver for September slumped 0.65% to trade at USD42.02 a troy ounce, while copper for September delivery fell 0.72% to trade USD3.983 a pound.