Investing.com - Gold prices shot up in U.S. trading on Wednesday after German industrial output data came in much stronger than expected and sent investors chasing the euro and ditching the U.S. dollar, often a recipe for firming gold prices.
Expectations for rising physical demand in Asia pushed up prices as well.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.76% at USD1,474.25 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,446.95 and down from a high of USD1,475.55 a troy ounce.
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.
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%.
The numbers bolstered hopes that the German economy, Europe's largest, may post better-than-expected growth rates for the first quarter.
During the October-December period of 2012, Germany's economy contracted by 0.5%.
Official data released on Tuesday revealed that German factory orders climbed 2.2% in March, defying expectations for a 0.5% decline.
The string of good news out of Germany put to rest recent concerns that the European Central Bank may trim benchmark borrowing costs, which sent the euro rising and the dollar falling.
Gold and the dollar tend to trade inversely with one another.
Prices also rose as investors took up positions on expectations for a pickup in physical demand in China in the coming months.
Elsewhere on the Comex, silver for July delivery was up 0.66% at USD23.962 a troy ounce, while copper for July delivery was up 2.04% and trading at USD3.370 a pound.
Expectations for rising physical demand in Asia pushed up prices as well.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.76% at USD1,474.25 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,446.95 and down from a high of USD1,475.55 a troy ounce.
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.
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%.
The numbers bolstered hopes that the German economy, Europe's largest, may post better-than-expected growth rates for the first quarter.
During the October-December period of 2012, Germany's economy contracted by 0.5%.
Official data released on Tuesday revealed that German factory orders climbed 2.2% in March, defying expectations for a 0.5% decline.
The string of good news out of Germany put to rest recent concerns that the European Central Bank may trim benchmark borrowing costs, which sent the euro rising and the dollar falling.
Gold and the dollar tend to trade inversely with one another.
Prices also rose as investors took up positions on expectations for a pickup in physical demand in China in the coming months.
Elsewhere on the Comex, silver for July delivery was up 0.66% at USD23.962 a troy ounce, while copper for July delivery was up 2.04% and trading at USD3.370 a pound.