Investing.com - Gold prices crept up in Asian trading on
Wednesday after investors looked past mixed data out of Europe,
which bolstered the U.S. dollar earlier.
Gold and the dollar tend to trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery were up 0.06% at USD1,425.35 a troy ounce
in Asian trading on Wednesday, up from a session low of USD1,423.55
and down from a high of USD1,429.35 a troy ounce.
Gold futures were likely to test support USD1,419.95 a troy ounce,
Tuesday's low, and resistance at USD1,444.15, Tuesday's high.
In Europe on Tuesday, the ZEW index of German economic sentiment
rose to 36.4 in May from 36.3 in April, well below expectations for
a reading of 38.3, which put pressure on the single currency and
sparked demand for the dollar, often a recipe for falling gold
The index of current conditions fell to 8.9 from 9.2 in April,
which markets interpreted as a sign that the German economy could
face headwinds in its quest to rebound from a 0.5% contraction in
the fourth quarter.
Inflation in Germany, meanwhile, came in line with market
The country's consumer price index contracted 0.5 % in April from
March and rose 1.2% from April of last year, both figures in line
Elsewhere, Eurostat, the European Union's statistics office,
reported that industrial production in the euro area rose by 1% in
March from February, more than double expectations for a 0.4%
Spain saw borrowing costs fall to the lowest level since 2010 at an
auction of 12-month government bonds.
Conflicting data out of Europe prompted investors to seek safe
harbor on the liquid greenback, though by early Asian trading,
rising Japanese stock prices enticed investors out of the dollar,
which brought gold prices up with them.
Loose monetary policies at the Bank of Japan have prompted
investors to chase yield in Asian stocks and European bonds, among
Elsewhere on the Comex, silver for July delivery was down 0.32% at
USD23.305 a troy ounce, while copper for July delivery was up 0.03%
and trading at USD3.292 a pound.
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