IV:Gold extends losses to hit 11-month low; Silver at lowest since July
Investing.com - Gold futures extended heavy losses from the previous session to hit an 11-month low during European morning hours on Thursday, as investors were hesitant to enter the precious metals market amid a weak technical outlook.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,550.95 a troy ounce during European morning trade, down 0.15% on the day.
Comex gold prices fell by as much as 0.8% earlier in the session to hit a daily low of USD1,541.25 a troy ounce the weakest level since May 30, 2012.
Gold prices were likely to find support at USD1,532.75 a troy ounce, the low from May 30 and resistance at USD1,604.25, the high from April 2.
Gold futures have more than 3% this week as a bout of technical selling kicked in after prices broke below key support levels earlier in the week, triggering fresh sell orders amid bearish chart signals.
Gold could see further losses in the near-term, with market analysts warning of a possible move towards the USD1,530-level.
Gold prices came off the lows of the session after the Bank of Japan announced that it was launching an aggressive easing program in order to achieve its 2% inflation target.
At the end of a two-day meeting, the central bank said it would double the money supply through purchases of government bonds and other measures.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Investors now looked ahead to the European Central Bank’s policy decision due later Thursday, as well as comments by ECB President Mario Draghi.
Market players also looked ahead to Friday’s highly-anticipated U.S. monthly jobs report to further asses the strength of the country’s economy and the need for further stimulus from the Federal Reserve.
Elsewhere on the Comex, silver for May delivery eased up 0.25% to trade at USD26.86 a troy ounce. Comex silver fell by as much 0.5% earlier in the session to hit a low of USD26.66 a troy ounce, the weakest level since July 24.
Meanwhile, copper for May delivery fell 0.15% to trade at a nine-month low of USD3.326 a pound.
