Investing.com - Gold futures trimmed earlier losses to trade modestly lower during U.S. morning hours on Wednesday, as investors returned to the market to seek cheap valuations amid speculation prices fell too far too fast.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,384.25 a troy ounce during U.S. morning hours, down 0.25% on the day.
Comex gold prices fell by as much as 1% earlier in the session to hit a daily low of USD1,365.25 a troy ounce. Comex gold fell to USD1,322.25 an ounce on Tuesday, the weakest level since January 28, 2011.
Gold prices were likely to find support at USD1,322.25 a troy ounce, the previous session’s low and near-term resistance at USD1,391.80, the high from February 18, 2011.
Gold prices have lost nearly 16%, or almost USD240 per ounce, in the three sessions leading up to Wednesday, as investors exited the market after prices broke below key support levels.
It was the yellow metal’s worst three-day performance in three decades.
Prices of the precious metal are now down almost 29% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.
Market analysts have warned that gold prices could fall further, as attitude towards the precious metal remains bearish. Bank of America Merrill Lynch said earlier in the week that bullion could fall to USD1,200 per ounce.
Sentiment on the precious metal was dampened last week following the release of the minutes from the Federal Reserve’s most-recent policy meeting and a sell recommendation from Goldman Sachs.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.
News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.
Elsewhere on the Comex, silver for May delivery lost 1.5% to trade at USD23.26 a troy ounce, while copper for May delivery plunged 3.5% to trade at USD3.191 a pound.
The metals complex resumed its broad-based decline as investors continued to sell commodities amid bearish chart signals.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,384.25 a troy ounce during U.S. morning hours, down 0.25% on the day.
Comex gold prices fell by as much as 1% earlier in the session to hit a daily low of USD1,365.25 a troy ounce. Comex gold fell to USD1,322.25 an ounce on Tuesday, the weakest level since January 28, 2011.
Gold prices were likely to find support at USD1,322.25 a troy ounce, the previous session’s low and near-term resistance at USD1,391.80, the high from February 18, 2011.
Gold prices have lost nearly 16%, or almost USD240 per ounce, in the three sessions leading up to Wednesday, as investors exited the market after prices broke below key support levels.
It was the yellow metal’s worst three-day performance in three decades.
Prices of the precious metal are now down almost 29% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.
Market analysts have warned that gold prices could fall further, as attitude towards the precious metal remains bearish. Bank of America Merrill Lynch said earlier in the week that bullion could fall to USD1,200 per ounce.
Sentiment on the precious metal was dampened last week following the release of the minutes from the Federal Reserve’s most-recent policy meeting and a sell recommendation from Goldman Sachs.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.
News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.
Elsewhere on the Comex, silver for May delivery lost 1.5% to trade at USD23.26 a troy ounce, while copper for May delivery plunged 3.5% to trade at USD3.191 a pound.
The metals complex resumed its broad-based decline as investors continued to sell commodities amid bearish chart signals.