Forexpros – Gold prices fell in U.S. trading on Friday, as investors shrugged off the dollar’s losses and ditched the yellow metal as well in favor of stocks in a global risk-on trading session.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,777.05 a troy ounce, down 0.52%.
Gold futures were likely to test support at USD1,750.85 a troy ounce, Wednesday’s low, and resistance at USD1,788.85, Thursday’s high.
Gold normally trades inversely to the dollar but not always.
Healthy economic data out of Europe sent investors ditching the dollar, a traditional safe-haven asset class, as well as gold, the dollar’s hedge, amid search for riskier but more rewarding assets, stocks namely.
Stocks rose in both U.S. and European markets after Germany’s Ifo institute’s business climate index climbed to 109.6 in February from 108.3 in January, outpacing expectations.
Falling yields and healthy turnout in Italian bond auctions also sparked appetite for stocks, which sent gold falling.
Elsewhere on the Comex, silver for March delivery was down 0.37% and trading at USD35.423 a troy ounce, while copper for March delivery was up 1.70% and trading at USD3.871 a pound.
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