Posts
MTECHTIPS:-Gold holds steady as dollar eases as Sandy dissipates
Gold prices traded steady to higher on Wednesday after the yellow metal's traditional hedge, the dollar, weakened as investors emerged from the safety of the greenback in wake of massive storm Sandy.U.S. markets were closed on Tuesday after Sandy, a post-tropical storm, lashed the U.S. northeast with heavy winds, driving rains and deadly storm surge, which sent investors seeking safe-harbor in the liquid greenback prior.Trading, however, was choppy, as some investors still clung to the dollar ahead of Friday's October jobs report in the U.S.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.03% at USD1,712.65 a troy ounce, up from a session low of USD1,711.35 and down from a high of USD1,712.75 a troy ounce. Gold futures were likely to test support at USD1,701.45 a troy ounce, Friday's low, and resistance at USD1,719.35, Fridays' high.Investors crept out of the safety of the dollar after Sandy had weakened, as despite the widespread damage, businesses and communities will eventually brush off the debris and return to work.Gold also saw gains as appetite for risk grew in Europe, when Spanish gross domestic product figures came in not as bad as previously feared.The Spanish economy contracted by 0.3% in the third quarter, slightly better than expectations for 0.4% contraction, and while the country still remains mired in recession, the number sent investors ditching the dollar and buying euro, a recipe for rising gold prices.
Gold prices traded steady to higher on Wednesday after the yellow metal's traditional hedge, the dollar, weakened as investors emerged from the safety of the greenback in wake of massive storm Sandy.U.S. markets were closed on Tuesday after Sandy, a post-tropical storm, lashed the U.S. northeast with heavy winds, driving rains and deadly storm surge, which sent investors seeking safe-harbor in the liquid greenback prior.Trading, however, was choppy, as some investors still clung to the dollar ahead of Friday's October jobs report in the U.S.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.03% at USD1,712.65 a troy ounce, up from a session low of USD1,711.35 and down from a high of USD1,712.75 a troy ounce. Gold futures were likely to test support at USD1,701.45 a troy ounce, Friday's low, and resistance at USD1,719.35, Fridays' high.Investors crept out of the safety of the dollar after Sandy had weakened, as despite the widespread damage, businesses and communities will eventually brush off the debris and return to work.Gold also saw gains as appetite for risk grew in Europe, when Spanish gross domestic product figures came in not as bad as previously feared.The Spanish economy contracted by 0.3% in the third quarter, slightly better than expectations for 0.4% contraction, and while the country still remains mired in recession, the number sent investors ditching the dollar and buying euro, a recipe for rising gold prices.
No comments:
Post a Comment