Gold technicals show 5th monthly decline 18% of historical high of 1923.70 back in September. The metal’s price has dropped 9.4 % year to date of January. Prices are down 1.7 % this month. The current price level may represent buying opportunity for traders.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.21%, trading at USD1,579.55 a troy ounce.
Gold futures were likely to test support at USD1,567.95 a troy ounce, the low from July 24, and resistance at USD1,583.65, the high from July 24.
The U.S. dollar often serves as the safe-haven of choice when the European debt crisis heats up. Gold is the traditional hedge of choice for the dollar, but can play a similar role with other paper currencies as well. The euro dipped to a 2-year low against the greenback and a 12-year low against the yen in recent sessions.
Fears of a near European meltdown eclipsed otherwise positive output data out of China, where the country’s HSBC manufacturing purchasing managers index jumped to 49.5 in July, its highest level since February, from a final reading of 48.2 in June.
While the dollar was up early in the Asian session, gold posted gains as well.
Elsewhere on the Comex, silver for September delivery was up 0.16% and trading at USD26.853 a troy ounce, while copper for September delivery was down 0.57% and trading at USD3.345 a pound.
