Forexpros – Gold futures hit a two day high on Wednesday as nervousness of the outcome of the European summit triggered safe haven buying.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1745.45 a troy ounce during late U.S. trade gaining 0.75%.
It earlier hit a high of USD1746.75 striking two day highs.
Gold futures were likely to find support at USD1740.95 and technical resistance exists at USD1748.15.
Pessimism emanating from Germany regarding the feasibility of a economic solution being reached at Friday’s European summit sent waves of fear into the euro zone triggering safe haven buying.
European officials are discussing adding another bail out fund, doubling the capacity of the original. This fiscal uncertainty adds to the yellow metal’s safe haven appeal.
Today was an exception to the recent correlation of gold with other commodities and risk based assets.
Additional bullish fuel was gleaned from the expected euro zone interest rate cut on Thursday. The European Central Bank is expected to slash rates to a record low of 1%.
Lower rates decrease the cost of holding gold which is a benefit for investors.
Elsewhere on the Comex, silver for March delivery gave back 0.51% to trade at USD32.61 a troy ounce, while copper for March delivery fell .059% to trade at USD3.43 a pound.
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