Gold falls slightly, extends U.S. losses
Published Mar 25, 2013 08:29PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery are off 0.08% at USD1,605.15 per troy ounce in Asian trading Tuesday after settling down 0.23% at USD1,604.25 a troy ounce in U.S. trading on Monday.
Gold futures were likely to test support USD1,590.80 a troy ounce, last Monday's low, and resistance at USD1,615.80, Thursday's high.
Traders moved away from gold Monday after euro zone finance ministers and the International Monetary Fund approved a EUR10 billion rescue package for Cyprus provided the country close up its second-largest lender, Laiki Bank.
The deal guarantees deposits at Cypriot banks will be insured up to EUR100,000 and although the news is arguably positive, it sparked fears that future bailouts in the euro zone may call for bank restructurings. The European Union sought to assuage investors on that front.
"Cyprus is a specific case with exceptional challenges which required the bail-in measures we have agreed upon yesterday," the Eurogroup president said in a statement. "Macro-economic adjustment programmes are tailor-made to the situation of the country concerned and no models or templates are used."
As a result, U.S. stocks faltered on the day, but traders passed over gold in favor of safer assets, such as the U.S. dollar.
Meanwhile, Comex silver for May delivery fell 0.08% to USD28.793 per ounce while copper for May delivery is higher by 0.10% at USD3.454 per ounce.
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Written By: Investing.com
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