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Gold down slightly on profit-taking

Published 06/06/2013, 08:37 PM
Updated 06/06/2013, 08:38 PM
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Investing.com - Gold futures traded slightly lower in the early part of Friday’s Asian session as traders locked in profits on the yellow metal following impressive performance during Thursday’s U.S. session.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched down 0.08% to USD1,414.65 per troy ounce in Asian trading Friday after settling up 1.20% at USD1,415.35 a troy ounce in U.S. trading on Thursday.

Gold futures were likely to test support USD1,388.65 a troy ounce, Tuesday's low, and resistance at USD1,444.15, the high from May 14.

Gold got a lift from some tepid U.S. economic data and commentary from the European central bank. In economic news out Thursday, the U.S. Labor Department said first-time claims for jobless benefits fell by 11,000 to 346,000 last week. Economists expected new claims to fall to 345,000. The Labor Department delivers the May non-farm payroll report Friday before the open of U.S. markets.

Across the pond, the European Central Bank left its benchmark interest rate unchanged at 0.5% and left deposit rates at zero. ECB President Mario Draghi said the eurozone economy should contract by 0.6% in 2013 compared with a 0.5% contraction forecast made in March.

Also on Thursday, Goldman Sachs sounded a bearish tone on gold, saying weakness in bullion and soft commodities will pressure gains for commodities as an assets class. Copper, gold and silver have all entered bear markets this year, meaning they have fallen 20% or more from their respective peaks.

Citigroup, Credit Suisse and UBS are among the other global banks that have warned dwindling returns offered by commodities this year.

Elsewhere, Comex silver for July delivery rose fell 0.29% to USD22.462 per ounce while copper for July delivery inched down 0.08% to USD3.325 an ounce.


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