Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Gold prices dip in Asia, but Ukraine events support

Published 04/21/2014, 08:43 PM
Updated 04/21/2014, 08:45 PM
Gold prices dip in Asia

Investing.com - Gold prices dipped slightly in Asia on Tuesday, but remain supported by tensions between Russia and the West over events in the Ukraine.

On the Comex division of the New York Mercantile Exchange, Gold futures for June delivery traded at $1,287.90 a troy ounce, down 0.05%, afterhitting an overnight session low of $1,282.00 and off a high of $1,301.20.

Overnight, gold prices dipped after a forward-looking U.S. economic indicator came in slightly better than expected and gave the dollar support.

In the U.S. earlier, the Conference Board reported earlier that its index of leading indicators, which measures future economic activity, increased 0.8% in March after a 0.5% rise in February, beating expectations for a 0.7% reading.

Elsewhere, the Chicago Fed National Activity Index decreased to 0.20 in March from 0.53 in February, in line with expectations.

The numbers reminded investors that even though the timing of rate hikes in the U.S. remains unclear, the Federal Reserve remains on track to continue tapering its monthly bond-purchasing program this year as the economy recovers.

Fed bond purchases, currently standing at $55 billion a month, weaken the dollar by suppressing interest rates, making gold an attractive hedge while such policies remain in effect.

Elsewhere, Japan's March trade deficit widened to ¥1.446 trillion, outpacing a forecast for a ¥1.070 trillion figure.

Exports were up 1.8% on-year, missing a forecast of a 6.3% year-on-year gain and imports rose 18.1%, with expectations for a 16.2% increase.

The data for the full-year ended March showed the country reached a record trade deficit of ¥13.7 trillion.

Soft Japanese trade figures boosted the dollar further, which tarnished gold's appeal on Monday.

Silver for May delivery rose 0.19% at US$19.388 a troy ounce, while copper futures for May delivery were down 0.13% at US$3.041 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.