Forexpros – bsp;- Gold futures fell again Thursday pointing toward the first quarterly loss in 3 months after the Feds refrained from additional stimulus.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1576.15 a troy ounce during mid U.S. trade falling 0.65%.
It earlier hit a high of USD1596.45.
Gold futures were likely to find support at USD1570.45 and technical resistance exists at USD1577.15.
Yesterday, the precious metal closed below its 200 day moving average for the first time in nearly three years. Technical analysts consider this a major break down thus expect additional downside.
The Fed stated that the U.S. is maintaining its expansion and held back from taking further actions to spur the economy sparking the decline.
Interestingly, holdings in bullion backed exchange traded products climbed to an all time high yesterday of 2,360.81 metric tons.
Heraeus Precious Metal Management’s trader Fred Schoenstein told Bloomberg, “Over the course of the last three days, there’s been a shift to people raising cash and selling gold. The economic outlook hasn’t changed, and the euro situation has only gotten worse. The outlook remains relatively bullish for gold.”
For much of the last year, investor’s typical reaction to bad news from Europe was to buy gold, as its boosts safe haven appeal of the precious metal, but that relationship has unraveled recently.
Instead, gold futures have moved largely in line with other commodities and risk assets over the past month, with investors preferring the relative safety of the U.S. dollar.
Elsewhere on the Comex, silver for March delivery gained by 0.67% to trade at USD29.13 a troy ounce, while copper for March delivery eased higher 0.01% to trade at USD3.27a pound.
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