Investing.com - Gold futures slumped to the lowest level in three months on Thursday, as investors were reluctant to open new positions before the new-year amid lingering concerns over the euro zone’s debt crisis, with moves amplified in poor year-end liquidity.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,552.85 a troy ounce during early European morning trade, slumping 0.72%.
It earlier fell by as much as 0.85% to trade at USD1,545.35 a troy ounce, the lowest since September 26.
Gold futures were likely to find support at USD1,533.35 a troy ounce, the low of September 26 and resistance at USD1,594.25, the previous day’s high.
Trading volumes were expected to remain low, with most investors already away on year-end leave.
Italy sold EUR9 billion of six-month bills on Wednesday, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November.
However, the sale failed to reassure markets after data showed Wednesday that the use of the European Central Bank's overnight deposit facility reached a new, all-time high of EUR452.03 billion on Tuesday, revealing that European lenders are still unwilling to lend to each other.
The news prompted investors to shun riskier assets, such as stocks and commodities and flock to traditional safe haven assets like the U.S. dollar. The euro dropped to a one-year low against the greenback and fell to a ten-year trough against the yen.
Later in the day, Italy’s Treasury was to sell EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 later Thursday.
Ahead of the auctions, the yield on Italy’s ten-year bonds traded at 7.02%, above the 7% threshold widely viewed as unsustainable in the long-term.
Gold has been pressured in recent months, with its safe haven appeal waning as investors prefer the U.S. dollar as their safe haven of choice amid Europe’s deepening sovereign debt crisis.
Year-end selling by hedge funds and tight liquidity in European interbank money markets have also contributed to recent price falls.
Prices have tumbled nearly 18% since hitting a record high of USD1920 in early September. Despite the slump, prices are still 11% higher on the year, on track for its 11th consecutive annual gain.
Elsewhere on the Comex, silver for March delivery fell 0.95% to trade at a three-month low of USD26.97 a troy ounce, while copper for March delivery shed 0.25% to trade at USD3.357 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,552.85 a troy ounce during early European morning trade, slumping 0.72%.
It earlier fell by as much as 0.85% to trade at USD1,545.35 a troy ounce, the lowest since September 26.
Gold futures were likely to find support at USD1,533.35 a troy ounce, the low of September 26 and resistance at USD1,594.25, the previous day’s high.
Trading volumes were expected to remain low, with most investors already away on year-end leave.
Italy sold EUR9 billion of six-month bills on Wednesday, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November.
However, the sale failed to reassure markets after data showed Wednesday that the use of the European Central Bank's overnight deposit facility reached a new, all-time high of EUR452.03 billion on Tuesday, revealing that European lenders are still unwilling to lend to each other.
The news prompted investors to shun riskier assets, such as stocks and commodities and flock to traditional safe haven assets like the U.S. dollar. The euro dropped to a one-year low against the greenback and fell to a ten-year trough against the yen.
Later in the day, Italy’s Treasury was to sell EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 later Thursday.
Ahead of the auctions, the yield on Italy’s ten-year bonds traded at 7.02%, above the 7% threshold widely viewed as unsustainable in the long-term.
Gold has been pressured in recent months, with its safe haven appeal waning as investors prefer the U.S. dollar as their safe haven of choice amid Europe’s deepening sovereign debt crisis.
Year-end selling by hedge funds and tight liquidity in European interbank money markets have also contributed to recent price falls.
Prices have tumbled nearly 18% since hitting a record high of USD1920 in early September. Despite the slump, prices are still 11% higher on the year, on track for its 11th consecutive annual gain.
Elsewhere on the Comex, silver for March delivery fell 0.95% to trade at a three-month low of USD26.97 a troy ounce, while copper for March delivery shed 0.25% to trade at USD3.357 a pound.