Investing.com - Gold futures edged lower in European morning trade on Thursday, after Italy saw borrowing costs surge to the highest level since mid-January at a bond auction earlier in the day, adding to fears over the euro zone’s debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,657.75 a troy ounce during European morning trade, dipping 0.15%.
It earlier fell by as much 0.25% to trade at a session low of USD1,655.75 a troy ounce.
Gold futures were likely to find support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,685.25, the high from April 2.
The June contract dropped to the lowest levels of the session after Italy's Treasury sold EUR2.88 billion of three-year bonds, less than the targeted amount of EUR3 billion.
Yields on the three-year bonds rose to 3.89%, the highest since mid-January, and up sharply from 2.76% at a similar auction last month.
On Wednesday, Italy saw its one-year borrowing costs rise for the first time since November, in a poorly received government bond auction.
Bond auctions have been key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Investors were also monitoring Spain’s debt woes amid concerns it will be the next euro zone member to require a bailout.
On Wednesday, European Central Bank Executive Board member Benoit Coeure said that the central bank still had its bond-buying program available as an option to ease pressure on the Spanish bond market.
Gold prices have been stuck in a narrow trading pattern in recent days, as investors search for the next catalyst to take prices higher.
Gold investors will be closely watching U.S. data in the second quarter for clues as to the likelihood of a fresh round of monetary easing, as well as developments surrounding the euro zone’s ongoing debt crisis amid concerns Spain will be the next country to require a bailout.
Elsewhere on the Comex, silver for May delivery added 0.15% to trade at USD31.56 a troy ounce, while copper for May delivery rose 0.9% to trade at USD3.673 a pound.
Copper traders were eyeing the release of Chinese first quarter gross domestic product figures on Friday.
The World Bank was the latest to cut China’s growth figures, saying it expected the Asian nation to grow at a rate of 8.2% this year, down from a January projection of 8.4%.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,657.75 a troy ounce during European morning trade, dipping 0.15%.
It earlier fell by as much 0.25% to trade at a session low of USD1,655.75 a troy ounce.
Gold futures were likely to find support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,685.25, the high from April 2.
The June contract dropped to the lowest levels of the session after Italy's Treasury sold EUR2.88 billion of three-year bonds, less than the targeted amount of EUR3 billion.
Yields on the three-year bonds rose to 3.89%, the highest since mid-January, and up sharply from 2.76% at a similar auction last month.
On Wednesday, Italy saw its one-year borrowing costs rise for the first time since November, in a poorly received government bond auction.
Bond auctions have been key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Investors were also monitoring Spain’s debt woes amid concerns it will be the next euro zone member to require a bailout.
On Wednesday, European Central Bank Executive Board member Benoit Coeure said that the central bank still had its bond-buying program available as an option to ease pressure on the Spanish bond market.
Gold prices have been stuck in a narrow trading pattern in recent days, as investors search for the next catalyst to take prices higher.
Gold investors will be closely watching U.S. data in the second quarter for clues as to the likelihood of a fresh round of monetary easing, as well as developments surrounding the euro zone’s ongoing debt crisis amid concerns Spain will be the next country to require a bailout.
Elsewhere on the Comex, silver for May delivery added 0.15% to trade at USD31.56 a troy ounce, while copper for May delivery rose 0.9% to trade at USD3.673 a pound.
Copper traders were eyeing the release of Chinese first quarter gross domestic product figures on Friday.
The World Bank was the latest to cut China’s growth figures, saying it expected the Asian nation to grow at a rate of 8.2% this year, down from a January projection of 8.4%.