Gold futures resumed their recently renewed bullish ways in the early part of Wednesday’s Asian session after enduring a modest loss Tuesday in the U.S.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery jumped 0.60% to USD1,342.75 per troy ounce in Asian trading Wednesday after settling down 0.04% at USD1,335.45 a troy ounce in U.S. trading on Tuesday.
Gold futures were likely to find support at USD1,269.45 a troy ounce, Wednesday's low, and resistance at USD1,338.45, Monday's.
Gold prices have soared since crossing the psychologically important USD1,300 an ounce level, though bullion is still saddled with a year-to-date loss. Gold prices soared on Monday after the National Association of Realtors reported that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June. Sales for May were revised down to 5.14 million from a previously reported 5.18 million.
Gold and other precious metals have also been boosted by news that the Federal Reserve plans to keep its accommodating monetary policy in place for the foreseeable future. Bullion in its worst quarterly performance in multiple decades in the second quarter on fears that the Fed was close to tapering its USD85 billion quantitative easing program.
Federal Reserve officials have said they will pay close attention to economic data when deciding when to taper and eventually close stimulus programs, though they have added they won't follow specific timetables.
Since June 26, the SPDR Gold Shares, the largest ETF backed by physical gold, has gained more than 8%, outperforming the S&P 500 in the process.
Elsewhere, Comex silver for September delivery fell 0.20% to USD20.405 per ounce while copper for September delivery dropped 0.44% to USD3.199 per ounce. - Investing.com