Equityworld Future-Gold prices fell to its lowest in 10 months at the end of trading on Tuesday morning (06/12) triggered the strengthening of European markets and Wall Street with investors shrugged off fears of political instability in Italy, while US Treasury yields rose after the positive US economic data.

LLG Spot gold prices fell 0.47 percent at $ 1,170.67 per ounce. Gold prices had dropped as much as 1.6 percent to its lowest level since February at $ 1,157 per ounce.

While the price of US gold futures for February delivery ended at $ 1,176.50.

Wall Street closed higher at the end of trading on Tuesday before dawn, not affected the political situation in Italy that led to the resignation of Prime Minister Matteo Renzi, while shares of financial, technology and consumer discretionary rose about 1 percent.

These metals are also under pressure due to the strengthening of European stock markets, as investors were reassured by expectations the European Central Bank (ECB) will issue a policy if needed. The next ECB policy meeting on Thursday.

Yields on 10-year US Treasury rose, after the Institute for Supply Management said the pace of growth of domestic service industries accelerated more than forecast in November.

Italian Prime Minister Matteo Renzi said he would resign after suffering a crushing defeat on Sunday in a referendum on constitutional reform, raising fears of early elections in 2017.

Gold fell more than 1 percent on Monday as the euro weakened against the dollar after Italian Prime Minister Matteo Renzi conceded defeat in a referendum on plans to reform the constitution.

Political uncertainty in the euro zone previously pushed safe-haven demand for gold, but the precious metal later gave up gains to trade lower.

Speculators reducing their net long position in gold futures and options by 17,843 lots to 103,392 lots, the lowest since February, the data that the US Commodity Futures Trading Commission show on Friday.

While the silver fell 0.9 percent to $ 16.56 per ounce, after touching its highest in more than two weeks earlier in the session.

Platinum was up 0.4 percent at $ 930.60 an ounce and palladium rose 0.3 percent to $ 742 per ounce.

Analyst Equityworld Futures Research Center estimates that the price of gold at the next trade has the potential to move up with the weakening US dollar. Prices are expected to move in the range of $ 1,173- $ 1.175 Resistance, whereas if the price drops will move in the range of $ 1,169- $ 1.167 Support.

 

Equityworld Future