Forexpros – Gold prices dipped in Asian trading Thursday, as investors sold for profits despite a falling dollar, as traders largely ignored the Federal Reserve Beige Book’s report that the economy grew at a moderate clip in March and bought on falling Spanish yields.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.04% at USD1,659.75 a troy ounce in Asian trading on Thursday.
Gold futures were likely to test support at USD1,633.05 a troy ounce, Tuesday’s low, and resistance at USD1,682.65, the high from April 3.
Gold posted decent gains in recent sessions on sentiments the U.S. Federal Reserve would consider stimulating the economy via liquidity injections to spark greater price stability and hiring.
The March jobs report showed the economy picked up only 120,000 nonfarm payrolls, far below expectations.
Monetary easing tools tend to weaken the dollar and send gold climbing, although the Federal Reserve has largely been mute on the matter.
Prior to Asian trading on Wednesday, the Fed released its Beige Book, where it predicted the economy would grow at a modest to moderate pace in March, which suggests the economy may be stuck in a lackluster recovery but avoids definitive hints at easing.
Meanwhile in Europe, yields fell on Spanish government bonds on hope the country can avoid succumbing further to the debt crisis, which gave euro investors less of a need to sell and run to gold as a hedge against the currency.
Elsewhere on the Comex, silver for May delivery was up 0.19% and trading at USD31.580 a troy ounce, while copper for May delivery was up 0.42% and trading at USD3.650 a pound.
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