Gold Slumps after U.S. Stocks Reverse Sharply

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Slight Lower Trading Trend of Gold after U.S. Stocks Reverse Sharply
Slight Lower Trading Trend of Gold after U.S. Stocks Reverse Sharply

The Asian trading session on Tuesday revealed that the gold futures are trading at a slightly lesser trend, following a pronounced turnaround in the U.S. stocks on Monday encouraged investors to assets with more risks. Gold futures were expected to check support at USD1,539.85 per troy ounce, which was Thursday’s low, and locate resistance at a value of USD1,582.85, which was the previous high. Gold futures scheduled for June delivery slid 0.07% to a value of USD1,571.45 a troy ounce during Tuesday in the Asian trading following finishing down 0.23% at a value of USD1,572.35 per troy ounce during the U.S. trading session on Monday, as per the Comex division of the New York Mercantile Exchange.

The precious metal was observed to have fallen victim to some profit taking on Monday during the U.S. session following a surge observed the previous Friday subsequent to the announcements from the U.S. Labor Department. The statements indicated that the largest economy in the world saw an increase of 88,000 nonfarm payrolls in March, which was significantly below speculations of a forecast of 200,000 and lower compared to the 268,000 jobs that was added in February.

With the trends of gold seen to be off to an unhappy start this year, some traders see reasons for optimism, especially if futures can locate long-term support at a value of USD1,525 a troy ounce.

In other news, Comex silver scheduled for May delivery is ahead 0.06% at a value of USD27.153 an ounce whereas copper scheduled for May delivery is at a higher position by 0.33% at USD3.384 an ounce.

Oil futures are seen to be trading just higher during the Asian session on Tuesday, although catalysts to move crude considerably in a single direction or the other are observed to be on short supply. Light, sweet crude futures scheduled for May delivery increased 0.07% to a value of USD93.42 a barrel during the Asian trading on Tuesday subsequent to settling 0.37% at a value of USD93.04 per barrel on Monday in the U.S. The Brent crude scheduled for May delivery slid 0.10% to a value of USD104.72 a barrel as per observed on the ICE Futures Exchange.