Forexpros – Gold futures slipped lower Thursday, as Greek leaders agreed on an austerity package and U.S. employment numbers provided a bullish surprise for risk assets.
On the COMEX division of the New York Mercantile Exchange, gold futures for April settlement traded at USD1730.45 a troy ounce during late U.S. trade falling 0.85%.
Gold futures were likely to find support at USD1712.65 a troy ounce, the low from February 7 and short term resistance at USD1754.65, Wednesday’s high.
Weakness in the U.S. dollar helped support gold prices. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased dropped by 0.10% to 78.64.
Dollar weakness generally lifts gold prices, as it increases their appeal as an alternative asset and makes dollar priced commodities less expensive for holders of other currencies.
Gold’s move was sparked when Greek officials reached an agreement on austerity measures needed to obtain a EUR130 billion bailout package.
However, Greece, the European Commission, the European Central Bank and the International Monetary Fund are meeting in Brussels today to determine if Greece has met its obligations to qualify for its second bailout package.
Gold found additional support when the European Central Bank decided to keep interest rates at the record low 1%. President Mario Draghi stated that surveys confirm tentative signs of economic stabilization in the euro zone.
Meanwhile, the Bank of England decided to stimulate the economy with another GBP50 billion to insure the economic recovery continues.
England’s Monetary Policy Committee increased the target for bond purchases to GBP325 billion, over a quarter of current outstanding gilts.
The United States saw a surprising decline in the number of first time unemployment claims last week. This solidifies hopes that the economic recovery is continuing in the world’s largest economy, adding to the anti gold risk appetite.
Elsewhere on the Comex, silver for March delivery advanced 0.46% to trade at USD33.86 a troy ounce, while copper for March delivery surged 1.71% to trade at USD3.98 per pound.
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