Investing.com - Gold futures extended losses from the previous session to hit a one-week low on Thursday, after minutes from the Federal Reserve’s most recent policy-setting meeting showed the central bank is considering ending its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,555.45 a troy ounce during European morning trade, down 0.2% on the day.
Comex gold prices fell by as much as 0.4% earlier in the day to hit a session low of USD1,553.15 a troy ounce, the weakest level since April 5.
Gold prices were likely to find support at USD1,539.85 a troy ounce, the low from April 4 and an 11-month low and resistance at USD1,590.05, the high from April 9.
Gold prices lost 1.7% on Wednesday after minutes from the Fed’s March 19-20 meeting showed that a number of FOMC participants saw QE tapering around midyear, while others believed it would probably be appropriate to slow purchases later in the year and to stop them by year-end.
One member wanted to slow the bond purchases immediately, while two members indicated that the purchases might well continue at the current pace at least through the end of the year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.
News that Cyprus was to sell “the excess amount of gold” owned by the debt-ridden state to raise an estimated EUR400 million also weighed on sentiment.
Cyprus had 13.9 metric tons of gold, valued at USD696 million, as of March 31, according to data from the World Gold Council.
Prices came under additional pressure after Goldman Sachs slashed its three-month gold price forecast to USD1,530 per ounce from a previous estimate of USD1,615 per ounce.
The investment bank also lowered its 12-month price forecast to USD1,390 from USD1,550, citing the weakening safe haven appeal of the precious metal.
Elsewhere on the Comex, silver for May delivery lost 1% to trade at USD27.37 a troy ounce, while copper for May delivery shed 0.4% to trade at USD3.405 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,555.45 a troy ounce during European morning trade, down 0.2% on the day.
Comex gold prices fell by as much as 0.4% earlier in the day to hit a session low of USD1,553.15 a troy ounce, the weakest level since April 5.
Gold prices were likely to find support at USD1,539.85 a troy ounce, the low from April 4 and an 11-month low and resistance at USD1,590.05, the high from April 9.
Gold prices lost 1.7% on Wednesday after minutes from the Fed’s March 19-20 meeting showed that a number of FOMC participants saw QE tapering around midyear, while others believed it would probably be appropriate to slow purchases later in the year and to stop them by year-end.
One member wanted to slow the bond purchases immediately, while two members indicated that the purchases might well continue at the current pace at least through the end of the year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.
News that Cyprus was to sell “the excess amount of gold” owned by the debt-ridden state to raise an estimated EUR400 million also weighed on sentiment.
Cyprus had 13.9 metric tons of gold, valued at USD696 million, as of March 31, according to data from the World Gold Council.
Prices came under additional pressure after Goldman Sachs slashed its three-month gold price forecast to USD1,530 per ounce from a previous estimate of USD1,615 per ounce.
The investment bank also lowered its 12-month price forecast to USD1,390 from USD1,550, citing the weakening safe haven appeal of the precious metal.
Elsewhere on the Comex, silver for May delivery lost 1% to trade at USD27.37 a troy ounce, while copper for May delivery shed 0.4% to trade at USD3.405 a pound.