Investing.com – Gold futures extended losses on Wednesday, as a cautious sense of optimism that euro zone policymakers will make progress in resolving the region’s debt crisis dampened the safe haven appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,817.65 a troy ounce during U.S. morning trade, slumping 0.54%.
It earlier fell as much as 0.95% to trade at a daily low of USD1,816.35 a troy ounce.
Concerns over the debt crisis in the euro zone eased slightly after European Commission President Jose Manuel Barroso said that the commission would soon present options for the introduction of euro area bonds.
The remarks bolstered risk sentiment, with European equities jumping sharply, denting the appeal of the precious metal.
Markets were also awaiting a conference call planned between German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou later in the day.
Gold futures found support following the release of lackluster data on U.S. retail sales and wholesales prices.
The U.S. Census Bureau said earlier that retail sales in the U.S. unexpectedly stagnated in August, confounding expectations for a 0.2% gain, as high unemployment and the debt ceiling debate prompted investors to spend less.
Core retail sales, which exclude automobile sales, rose 0.1%, below expectations for a 0.2% gain.
A separate report showed that producer price inflation in the U.S. was flat in August, broadly in line with expectations, as lower oil prices offset rising food costs.
Wholesale prices excluding food and energy costs rose 0.1% in August after rising by 0.4% in the preceding month. Analysts had expected core PPI to rise by 0.2%.
Elsewhere on the Comex, silver for December delivery tumbled 1.71% to trade at USD40.49 a troy ounce, while copper for December delivery dropped 1.07% to trade USD3.930 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,817.65 a troy ounce during U.S. morning trade, slumping 0.54%.
It earlier fell as much as 0.95% to trade at a daily low of USD1,816.35 a troy ounce.
Concerns over the debt crisis in the euro zone eased slightly after European Commission President Jose Manuel Barroso said that the commission would soon present options for the introduction of euro area bonds.
The remarks bolstered risk sentiment, with European equities jumping sharply, denting the appeal of the precious metal.
Markets were also awaiting a conference call planned between German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou later in the day.
Gold futures found support following the release of lackluster data on U.S. retail sales and wholesales prices.
The U.S. Census Bureau said earlier that retail sales in the U.S. unexpectedly stagnated in August, confounding expectations for a 0.2% gain, as high unemployment and the debt ceiling debate prompted investors to spend less.
Core retail sales, which exclude automobile sales, rose 0.1%, below expectations for a 0.2% gain.
A separate report showed that producer price inflation in the U.S. was flat in August, broadly in line with expectations, as lower oil prices offset rising food costs.
Wholesale prices excluding food and energy costs rose 0.1% in August after rising by 0.4% in the preceding month. Analysts had expected core PPI to rise by 0.2%.
Elsewhere on the Comex, silver for December delivery tumbled 1.71% to trade at USD40.49 a troy ounce, while copper for December delivery dropped 1.07% to trade USD3.930 a pound.