Gold Futures Gain on Technical Support Levels

Gold futures gained on Wednesday despite stronger US dollar. The precious metal remained volatile in the whole session and was lower in the start of the session however recovered later as it reached very attractive levels for investors to make a fresh entry.

According to analysts, gold witnessed at technical bounce on the support level of $1,530 per ounce while many also had the opinion that the gold also appreciated on its safe haven status in reaction to raising concerns over Greece, Spain and Italy.

Gold futures contract for August delivery gained 1 percent or $14.70 to settle at $1,565.70 per ounce on the Comex division of the New York Mercantile Exchange. The respective contract touched the intraday low of $1,532.10 per ounce.

Chief market analyst, Peter Gran from USAGold commented, “The ongoing collapse in yields in countries with the ability to print … is now becoming rather ominous, It now seems like something evil this way cometh, and I just don’t think that sovereign debt — even that of a country with the perception of relative ‘safety’ — is where you want to be taking shelter entirely.”

The ICE dollar index DXY gained to 82.956 on Wednesday as compared to 82.468 on Tuesday. Though the rising dollar kept gold under pressure but reduced rating of Spain to B from BB- fro Egan-Jones Ratings Co came to the rescue for the precious metal.

Among other commodities, silver futures contract for July delivery gained 0.7 percent or $0.19 to settle at $27.98 per ounce while copper futures for the same month fell 2.1 percent or $0.07 to settle at $3.39 per pound.

Platinum futures contract for July delivery declined 1.9 percent or $26.90 to $1,401.20 per ounce while palladium futures for September delivery gained 0.1 percent or $0.45 to $606.50 per ounce at NYMEX.


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