Forexpros – Gold futures edged lower on Wednesday, as investors sold positions to lock in gains after gold prices notched their biggest one-day advance in seven weeks in the previous session.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,646.05 a troy ounce during late Asian trade, shedding 0.39%.
It earlier fell by as much as 0.85% to trade at a daily low of USD1,631.15 a troy ounce.
Gold prices rallied nearly 3.6% on Tuesday as strong gains in global equities made on the back of hopes that euro zone policy makers will act to support the region’s economy lessened the need to raise cash and cover losses in other markets.
However, the rally prompted some investors to sell their position on profit taking and lock in gains.
Losses were limited as optimism over Europe’s sovereign debt rescue plan faded amid lingering concerns over Greece’s sovereign debt woes.
The Financial Times reported that euro zone countries are divided over the terms of Greece’s second bailout package, amid growing concerns that the country’s funding needs rose significantly in the past few months.
Later in the day, Finland was to hold a vote on a potential enhancement of the European Financial Stability Facility.
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Meanwhile, London-based industry group GFMS Limited said in a report Tuesday that, “Gold’s appeal as a safe-haven asset remains intact given the uncertainty in global growth and concerns about Europe’s sovereign debt.”
The industry group maintained its view that gold prices will hit USD2000 an ounce by year’s end.
Elsewhere on the Comex, silver for December delivery slipped 0.1% to trade at USD31.50 a troy ounce, while copper for December delivery tumbled 2.43% to trade at USD3.356 a pound.
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