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Gold inches lower on modest profit-taking

Published 04/09/2013, 08:18 PM
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Investing.com - Gold futures are trading slightly lower in the early part of Wednesday’s Asian session as traders look to lock in profits following a decent performance by the yellow metal during Tuesday’s U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.03% to USD1,586.25 per troy ounce in Asian trading Wednesday after settling up 0.89% at USD1,586.55 a troy ounce in U.S. trading on Tuesday.

Gold futures were likely to test support USD1,567.15 a troy ounce, Monday's low, and resistance at USD1,604.25, last Tuesday's high.

In a research note out on Tuesday, Bank of America Merrill Lynch said gold should find support in the USD1,525-USD1,550 per ounce area and that a jump to USD1,625-USD1,630 per ounce would confirm a successful test of the aforementioned support. The analysts added that a return to that area could set gold up for a run back to USD1,800 per ounce.

Elsewhere, investors in Japan are selling gold at a noteworthy clip because gold there has surged nearly 5% in the past week because of the weaker yen. Gold traded at the Tokyo Commodity Exchange has gained nearly 7% since the Bank of Japan announced new monetary easing measures last week.

In the U.S., the state of Arizona is closer to approving the use of gold and silver as legal tender after the Republican-led state House of Representatives voted in favor of a proposal. If Arizona’s governor signs the bill into law, the state would be the second after Utah to recognize gold and silver as legal tender.

Meanwhile, Comex silver for May delivery is up 0.09% at USD27.905 while copper for May delivery is higher by 0.10% at USD3.437.


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