Gold Futures Rebound From Lowest in Five Weeks Amid Optimism for Greece
Gold rebounded from a five-week low amid renewed optimism that Greece will be able to tame its debt crisis and as a report showed increased U.S. hiring.
Investors with holdings amounting to at least 58 percent of the Greek bonds eligible for the nation’s debt swap have indicated they’ll participate, moving the country closer to the biggest sovereign restructuring in history. U.S. companies added 216,000 workers last month, according to data based on payrolls from ADP Employer Services. Yesterday, gold declined to $1,663.40 an ounce, the lowest since Jan. 25.
“There is some positive news out there for the economy, and that is helping gold,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Some investors are back after the big fall.”
Gold futures for April delivery gained 0.7 percent to settle at $1,683.90 at 1:59 p.m. on the Comex in New York. Prices retreated 2.9 percent in the previous three sessions.
Bullion dropped below its 200-day moving average yesterday for the first time since mid-January. Falling below the measure, currently at about $1,674, can be a bearish signal to some investors follow historical price patterns.
“The metal remains vulnerable to further pressure in the short term,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Silver futures for May delivery gained 2.4 percent to $33.585 an ounce in New York. Yesterday, prices slid to $32.49, the lowest since Jan. 25. Still, it’s the best-performing precious metal this year, with a gain of 20 percent.
On the New York Mercantile Exchange, palladium futures for June delivery rose 2 percent to $685.35 an ounce. Platinum futures for April delivery climbed 1 percent to $1,627.30 an ounce.
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