Forexpros – Gold futures fell for the fourth time in five trading sessions in light holiday trade as increased risk appetite lowered the appeal of the yellow metal..
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1608.75 a troy ounce during early U.S. trade dropping 0.11%.
It earlier hit a high of USD1615.55 and a low of 1605.35.
Gold futures were likely to find support at USD1601.39 and technical resistance exists at USD1615.99.
Light holiday trading combined with selling in bullion based ETF’s and increased risk appetite, pressured the metal lower on the session
Positive data from the U.S. economic front with jobless claims falling to the lowest level since April, 2008 and durable goods orders growing, increased the risk appetite of investors, triggering selling in the precious metal.
Dennis Cajigas of Zaner Group explained the gold sell off to Bloomberg, “The jobless numbers were better than expected. The U.S. economy is starting to find traction. The ETF numbers are also a factor.”
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 climbed by 0.81% to trade at USD29.28 a troy ounce, while copper for March delivery traded higher by 0.05% to trade at USD3.47 a pound.
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