Forexpros – Gold prices softened in Asian trading on Wednesday as the market digested weak U.S. economic indicators as well as a lack of progress tackling Europe’s debt problems, which fueled demand for the dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,739.15 a troy ounce, down 0.07%.
Gold futures were likely to test support at USD1719.15 a troy ounce, Monday’s low, and resistance at USD1750.55, Tuesday’s high.
Yields in Portuguese bond markets spiked earlier as fears of a government default grew.
Furthermore, optimism that Greece is on the cusp of setting debt-restructuring terms with private creditors waned, which bolstered the dollar.
Meanwhile in the U.S., home prices fell while consumer confidence figures came in much weaker than expected, which sparked a run for the greenback, gold’s traditional hedge.
However, recent Federal Reserve talk that a still sluggish economy will need low interest rates likely through 2014 mixed with market sentiments that further goosing via quantitative easing may be needed bolstered the metal somewhat.
Elsewhere on the Comex, silver for March delivery was down 0.22% and trading at USD33.190 a troy ounce, while copper for March delivery was up 0.01% and trading at USD3.792 a pound.
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