Gold continued to decline in the early part of Wednesday’s Asian session
even as the U.S. dollar traded lower against most of its major rivals.
On the Comex division of the New York Mercantile Exchange, gold futures for July delivery fell 0.18% to USD1,375.15 per troy ounce in Asian trading Wednesday after settling down 0.50% at USD1,377.15 a troy ounce in U.S. trading on Tuesday.
Gold futures were likely to test support USD1,323.00 a troy ounce, the low from April 16, and resistance at USD1,444.15, last Tuesday's high.
Although the Federal Reserve has been attempting to quash speculation its close to winding down or ending its USD85 billion per month bond-buying program, the dollar gained steam Tuesday ahead of Fed Chairman Ben Bernanke's Wednesday testimony before Congress.
Federal Reserve governors have suggested in public recently that the U.S. central bank may begin to scale back stimulus tools this summer, causing uncertainty in markets that made the dollar more attractive due to its safe-haven appeal, which came at gold's expense.
Elsewhere, it was reported that the University of Texas Investment Management Co., the endowment plan for the University of Texas and Texas A&M systems, has taken a $300 million paper loss because of tumbling gold prices.
Panic selling in the yellow metal has prompted the withdrawal of 600,000 pounds of gold from the SPDR Gold Shares, the largest ETF backed by physical. The SPDR Gold Shares was the second-largest ETF of any kind at the start of the year, but due to gold’s slide, the fund is now the fourth-largest ETF.
Meanwhile, Comex silver for July delivery rose 0.22% to USD22.505 per ounce while copper for July delivery rose 0.19% to USD3.344 per ounce
On the Comex division of the New York Mercantile Exchange, gold futures for July delivery fell 0.18% to USD1,375.15 per troy ounce in Asian trading Wednesday after settling down 0.50% at USD1,377.15 a troy ounce in U.S. trading on Tuesday.
Gold futures were likely to test support USD1,323.00 a troy ounce, the low from April 16, and resistance at USD1,444.15, last Tuesday's high.
Although the Federal Reserve has been attempting to quash speculation its close to winding down or ending its USD85 billion per month bond-buying program, the dollar gained steam Tuesday ahead of Fed Chairman Ben Bernanke's Wednesday testimony before Congress.
Federal Reserve governors have suggested in public recently that the U.S. central bank may begin to scale back stimulus tools this summer, causing uncertainty in markets that made the dollar more attractive due to its safe-haven appeal, which came at gold's expense.
Elsewhere, it was reported that the University of Texas Investment Management Co., the endowment plan for the University of Texas and Texas A&M systems, has taken a $300 million paper loss because of tumbling gold prices.
Panic selling in the yellow metal has prompted the withdrawal of 600,000 pounds of gold from the SPDR Gold Shares, the largest ETF backed by physical. The SPDR Gold Shares was the second-largest ETF of any kind at the start of the year, but due to gold’s slide, the fund is now the fourth-largest ETF.
Meanwhile, Comex silver for July delivery rose 0.22% to USD22.505 per ounce while copper for July delivery rose 0.19% to USD3.344 per ounce
