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Gold lower in Asia after U.S. pop

Published 05/08/2013, 08:23 PM
Updated 05/08/2013, 08:24 PM
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Investing.com - Gold futures traded lower in the early part of Thursday’s Asian session on what appeared to be some profit-taking following a solid performance by the yellow metal in Wednesday’s U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.27% to USD1,469.65 per troy ounce in Asian trading Thursday after settling up 1.76% at USD1,474.25 a troy ounce in U.S. trading on Wednesday.

Gold futures were likely to test support USD1,440.55 a troy ounce, Tuesday's low, and resistance at USD1,487.15, Friday's high.

Gold got a lift Wednesday from some decent data points from global economic powers.

Germany's industrial output, which includes manufacturing, mining, electricity and gas concerns, shot up 1.2% in March, the largest increase in a year and defying expectations for a 0.1% decline. February’s figure was revised up 0.6% from 0.5%.

Official data released on Tuesday revealed that German factory orders climbed 2.2% in March, defying expectations for a 0.5% decline. Germany is the euro zone’s largest economy.

In U.S. economic news, the Mortgage Bankers Association said the number of mortgage applications filed in the U.S. last week rose 7% while the refinancing index increased 8%.

Gold was also bolstered by reports that imports of the yellow metal in Hong Kong and China hit all-time highs in March. Physical demand is also seen as robust in India, another of the world’s largest gold consumers.

Meanwhile, Comex silver for July delivery fell 0.31% to USD23.853 per ounce while copper for July delivery rose 0.32% to USD3.371 per ounce.


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