Investing.com - Gold futures were largely unchanged on Wednesday, trading in a tight range after rallying more than 1% in the previous session amid renewed safe haven buying.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,659.55 a troy ounce during early European trade, easing down 0.07%.
The June contract traded in between a range of USD1,654.65, the daily low and a session high of USD1,661.55. Prices rose to USD1,663.95 on Tuesday, the highest since April 3.
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.
Gold prices jumped more than 1% on Tuesday as the safe haven appeal of the precious metal re-emerged amid fears that Spain will be the next country in the euro zone to require a bailout.
Concerns over Spanish borrowing costs intensified Tuesday, as the yield on the country’s 10-year government bond ticked up to 6.01%, the highest since November.
The increase in yields came as Spain’s Economy Minister Luis de Guindos declined to rule out an international bailout, while Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need extra capital if the economy weakens more than expected.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies.
Analysts at HSBC Holdings said that the yellow metal may be “decoupling from risk assets and resuming its more traditional role of safe haven.”
For much of the last year, investors' typical reaction to bad news from Europe was to buy gold, as it boosts the safe haven appeal of the precious metal, but that relationship unraveled in September, with gold futures moving largely in line with other commodities and risk-sensitive assets.
Meanwhile, gold prices continued to draw support from expectations of increased demand in top consumer India after gold jewelers in the country ended a three-week strike over the weekend.
The strike came to an end after India’s Finance Minister Pranab Mukherjee pledged to reconsider newly imposed taxes on the precious metal.
The 21-day work stoppage crippled the nation’s gold market after the country announced a 4% import duty hike on gold and a 0.3% excise tax on most gold jewelry.
Prices were expected to receive a boost in the near-term as one of the nation’s largest Hindu gold-buying festivals of Akshaya Tritiya begins on April 24.
In addition, the wedding season has already started in some parts of India. Gold is an integral part of most Indian weddings.
Elsewhere on the Comex, silver for May delivery added 0.15% to trade at USD31.72 a troy ounce, while copper for May delivery rose 0.27% to trade at USD3.660 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,659.55 a troy ounce during early European trade, easing down 0.07%.
The June contract traded in between a range of USD1,654.65, the daily low and a session high of USD1,661.55. Prices rose to USD1,663.95 on Tuesday, the highest since April 3.
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.
Gold prices jumped more than 1% on Tuesday as the safe haven appeal of the precious metal re-emerged amid fears that Spain will be the next country in the euro zone to require a bailout.
Concerns over Spanish borrowing costs intensified Tuesday, as the yield on the country’s 10-year government bond ticked up to 6.01%, the highest since November.
The increase in yields came as Spain’s Economy Minister Luis de Guindos declined to rule out an international bailout, while Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need extra capital if the economy weakens more than expected.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies.
Analysts at HSBC Holdings said that the yellow metal may be “decoupling from risk assets and resuming its more traditional role of safe haven.”
For much of the last year, investors' typical reaction to bad news from Europe was to buy gold, as it boosts the safe haven appeal of the precious metal, but that relationship unraveled in September, with gold futures moving largely in line with other commodities and risk-sensitive assets.
Meanwhile, gold prices continued to draw support from expectations of increased demand in top consumer India after gold jewelers in the country ended a three-week strike over the weekend.
The strike came to an end after India’s Finance Minister Pranab Mukherjee pledged to reconsider newly imposed taxes on the precious metal.
The 21-day work stoppage crippled the nation’s gold market after the country announced a 4% import duty hike on gold and a 0.3% excise tax on most gold jewelry.
Prices were expected to receive a boost in the near-term as one of the nation’s largest Hindu gold-buying festivals of Akshaya Tritiya begins on April 24.
In addition, the wedding season has already started in some parts of India. Gold is an integral part of most Indian weddings.
Elsewhere on the Comex, silver for May delivery added 0.15% to trade at USD31.72 a troy ounce, while copper for May delivery rose 0.27% to trade at USD3.660 a pound.