Gold Sets Higher Trading Levels before the European Union Summit

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Gold Sets Higher Trading Levels before the European Union Summit
Gold Sets Higher Trading Levels before the European Union Summit

In advance to the European Union summit scheduled for later this week, the futures in gold were observed to be positioning higher trades during the Asian session on Tuesday. Gold futures were expected to check support at USD1,560.60 a troy ounce, which was Friday’s low, and resistance at a value of USD1,1584.80, which was Thursday’s high. The New York Mercantile Exchange’s Comex division saw gold scheduled for April delivery increasing 0.11% to a value of USD1,579.80 per troy ounce on Tuesday during the Asian trading after advancing 0.11% to position at USD1,578.60 a troy ounce on Monday during the U.S. trading. With gold recording advances consecutively for three days, this precious metal showed excellent winning trends seen in the year 2013. The rise has been welcomed by traders who are considering gold as a safe choice.

This week is also significant with the EU summit scheduled for the later days in the week in Brussels. Fitch Ratings positioned Italy’s credit rating lower by one level, repeating the market participants that not everything is favorable in the third-largest economy in Europe. With political congestion there probable in the near-term, some investors are concerned that the newly employed Italian strictness measures could be in jeopardy.

Consequently, that would hinder the euro and possibly strengthen the appeal of gold as a safe-haven measure.

The futures related to oil were observed to be trading low to some extent during the Asian trading session held during Tuesday. Monday witnessed the trading down of oil by as much as 1.2% consequent to the announcement of some data points out of China, the second biggest consumer of oil in the world, which triggered concern. Industrial production in China increased in February 9.9%, lower than expected and also below the 10.3% rise recorded during the last month. February also saw a rise in China’s consumer prices.

The New York Mercantile Exchange observed that the futures for light, sweet crude oil scheduled for delivery in April slid 0.12% to a value of USD91.94 per barrel on Tuesday, during the Asian trading session, following the slight increase in the U.S. during Monday.