Forexpros – Gold prices shot up Friday, posting solid gains as investors snapped up positions on sentiment the precious metal was oversold after several sessions of declines.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,594.75 a troy ounce on Friday, up 1.11%.
Gold futures were likely to test support at USD1,590.59 a troy ounce and resistance at USD1,598.39.
Gold prices fell in recent sessions as European debt woes sent investors rushing to the greenback, which has resumed its status as a safe-haven asset now that the U.S. economy appears to be moving away from recession with inflation remaining within comfort zones.
On Friday, however, investors snapped up assets deemed oversold such as the euro and gold, sending dollar prices softening in the process.
“Gold took a beating this week and today bounced a bit as investors see this as a good moment to buy, but it is still vulnerable,” said Credit Agricole analyst Robin Bhar, according to Reuters.
“I expect gold will stay under pressure as the funding stress is increasing the need for liquidity, and gold is seen as one of the assets to liquidate.”
Elsewhere on the Comex, silver futures for March delivery were up 0.55% and trading at USD29.435 a troy ounce, while copper futures for March was up 2.07% at USD3.335 a pound.
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