Futures Pros – Gold futures were up for the first time in three days on Wednesday, recouping some of the previous day’s losses amid bargain buying and as a weaker U.S. dollar enhanced the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,458.85 a troy ounce during European morning trade, climbing 0.4%.
It earlier rose to a daily high of USD1,460.35 a troy ounce.
On Tuesday, gold prices fell to a one-week low of USD1,443.95 a troy ounce after oil prices tumbled and Goldman Sachs advised investors to “lock-in trading profits before the commodity market reverses”.
The price drop sparked some bargain buying from traders reluctant to bet that prices would fall further.
Global financial service provider UBS raised its one-month gold price forecast to USD1,500 a troy ounce compared to a previous estimate of USD1,450.
In a report published late Tuesday the lender cited “a host of gold-friendly factors”, including ongoing inflation and geopolitical concerns as well as “the U.S. Federal Reserve’s apparent lack of agreement on U.S. monetary policy”.
Weakness in the dollar had also contributed to gold’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to hit 74.99, just above a 16-month low of 74.93.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Meanwhile, silver for May delivery jumped 1% to hit USD40.43 a troy ounce, while copper for May delivery added 0.25% to trade at USD4.393 a pound during European morning trade.
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