Investing.com – Gold futures pared losses on Monday, easing off a six-week low, as the U.S. dollar turned lower against the euro and some safe-haven buying emerged ahead of a key parliamentary vote on austerity measures in Greece later in the week.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,498.55 a troy ounce during U.S. morning trade, shedding 0.31%.
It earlier fell as much as 0.7% to trade at USD1,491.85 a troy ounce, the lowest price since May 20.
The euro erased losses against the U.S. dollar after French lenders proposed a plan over the weekend to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to trade at 75.97, reversing an earlier gain of as much as 0.53%.
Global financial service provider Commerzbank said in a report earlier that gold prices have been “unable to profit from continued high-risk aversion of market players," as it has been pressured by the currency markets.
Meanwhile, investors awaited further developments in regards to Greece’s sovereign debt crisis. The country’s parliament was expected to start a three-day debate later Monday, ahead of a vote on a EUR28.4 billion austerity package on Wednesday.
Greek newspaper Ekathimerini reported Monday that as many as four parliamentary members of Prime Minister George Papandreou’s ruling Pasok party are considering voting against the austerity plan. Pasok holds a five-seat majority in the 300-seat chamber.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Elsewhere, silver for September delivery sank 1.4% to trade at USD33.85 a troy ounce, while copper for September delivery slumped 0.85% to trade at USD4.070 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,498.55 a troy ounce during U.S. morning trade, shedding 0.31%.
It earlier fell as much as 0.7% to trade at USD1,491.85 a troy ounce, the lowest price since May 20.
The euro erased losses against the U.S. dollar after French lenders proposed a plan over the weekend to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to trade at 75.97, reversing an earlier gain of as much as 0.53%.
Global financial service provider Commerzbank said in a report earlier that gold prices have been “unable to profit from continued high-risk aversion of market players," as it has been pressured by the currency markets.
Meanwhile, investors awaited further developments in regards to Greece’s sovereign debt crisis. The country’s parliament was expected to start a three-day debate later Monday, ahead of a vote on a EUR28.4 billion austerity package on Wednesday.
Greek newspaper Ekathimerini reported Monday that as many as four parliamentary members of Prime Minister George Papandreou’s ruling Pasok party are considering voting against the austerity plan. Pasok holds a five-seat majority in the 300-seat chamber.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Elsewhere, silver for September delivery sank 1.4% to trade at USD33.85 a troy ounce, while copper for September delivery slumped 0.85% to trade at USD4.070 a pound.