Gold Futures find Resistance at $1,600 per Ounce

Gold futures saw resistance at $1,600 per ounce on Wednesday after the positive development on US and euro zone’s debt situation. Senior market strategist, Adam Klopfenstein from Lind-Waldock in Chicago commented, “Optimism towards the budget and the debt-ceiling pulled gold lower,” he further added, “There’s still a lot of risk factors in the global economy.”

Gold futures contract for August delivery declined 0.3 percent of $4.20 to $1,560.90 per ounce on Wednesday at Comex division of New York Mercantile Exchange. Other base metals also remained under pressure and passed on the bearish sentiments to their respective highly traded exchange traded funds.

The most traded silver backed exchange traded fund, iShares Silver Trust reported the inflows 191 metric tons to 9,864 metric tons whereas the SPDR Gold Trust reported the outflows of 3.3 metric tons to 1,246 metric tons.

Many analysts believe that the gold and silver are facing several production problems along with issue of sovereign debt crisis.

Copper futures contract for September delivery dropped 0.7 percent or $0.03 to $4.44 per pound on Wednesday. Platinum futures contract for October delivery slipped $0.20 to $1,776.10 per ounce while its sister metal palladium futures contract for September delivery declined 0.6 percent or $4.65 to $793.65 per ounce on Wednesday.


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