Forexpros – Gold pushed higher Thursday, as a weakened U.S. dollar and continued Iranian tensions sparked buying in the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for April settlement traded at USD1,786.05 a troy ounce during U.S. afternoon trade, gaining 0.83%.
Futures were likely to find support at USD1,750.85 a troy ounce, Wednesday’s low and resistance at USD1,796.45, the high from November 14.
Gold prices climbed as the U.S. dollar fell against the euro on stronger than expected German business confidence figures.
Prices remain supported after prices broke above a key technical resistance level close to USD1,765 an ounce on Wednesday, indicating an upward momentum in prices.
Meanwhile, the international tensions over Iran’s nuclear program and the subsequent rise in oil prices to nine-month highs are also supporting gold prices.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
The dollar index, which tracks the performance of the greenback against a basket of its counterparts, traded lower by 0.52% increasing the gold bullish environment.
Also supporting sentiment, the New York Times reported that Greece’s lenders may have the right to seize the Bank of Greece’s gold reserves.
The Reuters Global Gold Forum confirmed that in the small print of the Greek bailout is a provision for Greece’s creditors to seize the country’s national gold reserves.
Elsewhere on the Comex, silver for March delivery surged 3.73% to trade at a three-month high of USD 35.53 a troy ounce, while copper for March delivery gave back 0.70% to trade at USD3.81 a pound.
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