Gold futures on the COMEX division of the New York Mercantile Exchange extended gains Wednesday as U.S. equities posted losses in the morning session, and European main stocks also closed lower Wednesday.
The most active gold contract for April delivery rose 16.5 U.S. dollars, or 1.35 percent, to settle at 1,239.10 dollars per ounce. Gold was given support as the U.S. stocks traded lower in the morning session Wednesday, while the benchmark DAX index at Frankfurt Stock Exchange on Wednesday went down by nearly 250 points.
FTSE 100 Index, the British benchmark stock market gauge, and French benchmark index CAC 40 both decreased Wednesday. Gold was given further support as a report from the Commerce Department said Wednesday that U.S. sales of new single-family houses in January were at a seasonally adjusted annual rate of 494, 000 units, missing market estimates of 520,000.
Given the weakness in U.S. equities, traders will be watching economic reports very carefully this week. The weekly jobless claims report is due out on Thursday, along with the durable goods report.
The gross domestic product report and and personal income and outlays report is due out on Friday. Silver for March delivery rose 5.7 cents, or 0.37 percent, to close at 15.297 dollars per ounce. Platinum for April delivery added 0.2 dollar, or 0.02 percent, to close at 943.70 dollars per ounce.
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