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Gold slides lower but remains near 1-year highs

Published 02/12/2016, 03:05 AM
© Reuters.  Gold loses some ground but global turmoil still supports
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Investing.com - Gold slid lower in European morning hours on Friday, but it still remained close to a one-year peak as global growth concerns, declining oil prices and uncertainty over additional U.S. rate hikes this year continued to support safe-haven demand.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.56% at $1,240.50.

The April contract ended Thursday's session 4.45% higher at $1,247.80 an ounce.

Futures were likely to find support at $1,204.60, Thursday’s low and resistance at $1,260.80, Thursday’s high.

The yellow metal remained supported amid persistent fears over the health of the global economy and the euro zone financial sector.

Markets were also jittery as oil prices remained below $28 a barel on Friday, even after the United Arab Emirates energy minister said the OPEC was willing to talk with other exporters about cutting output.

In the U.S., Federal Reserve Chair Janet Yellen reiterated to the Senate on Thursday comments made the previous day to Congress.

In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy.

But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China.

Elsewhere in metals trading, silver futures for March delivery dropped 0.67% to $15.700 a troy ounce, while copper futures for March delivery edged up 0.10% to $2.015 a pound.

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