Investing.com - Gold futures were lower for the first time in six days on Tuesday, easing off the previous session’s one-week high as investors remained hesitant to buy into the market amid a shaky technical outlook.
Gold prices also struggled due to a stronger U.S. dollar, which makes dollar-priced commodities more expensive to investors holding other currencies. The dollar index was up 0.45% to trade at 83.14, the strongest level since April 4.
Prices remained supported amid indications of strong physical demand in the U.S. and Asia.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,416.15 a troy ounce during U.S. morning hours, down 0.35% on the day.
Comex gold prices fell by as much as 0.8% earlier in the session to hit a daily low of USD1,409.75 a troy ounce. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.
Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and near-term resistance at USD1,440.10, the high from March 7, 2011.
Gold futures rallied to a one-week high of USD1,438.35 a troy ounce on Monday, as a bout of technical buying kicked in after prices broke above key resistance levels.
However, market analysts warned that the technical picture remains shaky after the precious metal failed to close at the highest levels of the day after meeting strong resistance at the USD1,438-level.
Gold futures remained supported after the U.S. Mint said it sold 175,000 troy ounces of gold coins so far in April, up almost three-fold from the 62,000 troy ounces the Mint had sold in all of March.
Buying interest also improved significantly in top consumers India and China, according to local bullion dealers.
Prices of the precious metal are now down almost 26% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.
Sentiment on the precious metal was dampened amid concerns the Federal Reserve will end its bond-buying program sooner-than-expected.
News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.
Elsewhere on the Comex, silver for May delivery tumbled 2.5% to trade at USD22.74 a troy ounce, while copper for May delivery fell 1% to trade at an 18-month low of USD3.099 a pound.
Silver and copper futures fell sharply after data showed that manufacturing activity in China expanded at a slower rate in April, underlining concerns over a slowdown in industrial demand for the metals.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a two-month low of 50.5 in April from a final reading of 51.6 in March.
Gold prices also struggled due to a stronger U.S. dollar, which makes dollar-priced commodities more expensive to investors holding other currencies. The dollar index was up 0.45% to trade at 83.14, the strongest level since April 4.
Prices remained supported amid indications of strong physical demand in the U.S. and Asia.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,416.15 a troy ounce during U.S. morning hours, down 0.35% on the day.
Comex gold prices fell by as much as 0.8% earlier in the session to hit a daily low of USD1,409.75 a troy ounce. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.
Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and near-term resistance at USD1,440.10, the high from March 7, 2011.
Gold futures rallied to a one-week high of USD1,438.35 a troy ounce on Monday, as a bout of technical buying kicked in after prices broke above key resistance levels.
However, market analysts warned that the technical picture remains shaky after the precious metal failed to close at the highest levels of the day after meeting strong resistance at the USD1,438-level.
Gold futures remained supported after the U.S. Mint said it sold 175,000 troy ounces of gold coins so far in April, up almost three-fold from the 62,000 troy ounces the Mint had sold in all of March.
Buying interest also improved significantly in top consumers India and China, according to local bullion dealers.
Prices of the precious metal are now down almost 26% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.
Sentiment on the precious metal was dampened amid concerns the Federal Reserve will end its bond-buying program sooner-than-expected.
News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.
Elsewhere on the Comex, silver for May delivery tumbled 2.5% to trade at USD22.74 a troy ounce, while copper for May delivery fell 1% to trade at an 18-month low of USD3.099 a pound.
Silver and copper futures fell sharply after data showed that manufacturing activity in China expanded at a slower rate in April, underlining concerns over a slowdown in industrial demand for the metals.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a two-month low of 50.5 in April from a final reading of 51.6 in March.