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Gold reverses gains as market looks beyond U.S. data

Published 03/28/2012, 08:39 PM
Updated 03/28/2012, 08:40 PM
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Investing.com - Gold prices rose in Asian trading on Thursday, as investors snapped up positions in the yellow metal after it plunged on news that demand for durable goods in the U.S. disappointed last month.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded up 0.33% at USD1,666.05 a troy ounce.

Gold futures were likely to test support at USD1656.55 a troy ounce, Wednesday's low, and resistance at USD1,699.55, Tuesday's high.

In the U.S., the Commerce Department reported durable goods orders increased 2.2% in February, not enough to fully reverse January's revised 3.6% decline.

The number also failed to meet expectations for a 3.0% increase.

The data initially sent investors running to the dollar, a safe-haven asset popular among times of uncertainty and falling stock prices.

Share prices fell on the news that durable goods figures disappointed.

However, the U.S. Federal Reserve has not ruled out the possibility of stimulating the economy via easing measures, such as buying bonds from banks, injecting the economy full of liquidity to better ensure price and labor stability in the process.

Under such policies, the dollar weakens and gold strengthens, and investors sought to stock up on gold on Thursday, as even talk of monetary stimulus can send the metal soaring, especially with gross domestic product figures and initial jobless claims numbers due out later in the week.

Elsewhere on the Comex, silver for May delivery was up 0.81% and trading at USD32.088 a troy ounce, while copper for May delivery was up 0.04% and trading at USD3.809 a pound.






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