Investing.com - Gold futures traded lower Wednesday, on a stronger U.S. dollar and continued Greek troubles amid extended creditor negotiations.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1735.35 a troy ounce during late U.S. trade giving back 0.75%.
It earlier advanced by as much as 0.37% to trade at a three day high of USD1754.65 a troy ounce.
Futures were likely to find support at USD1,712.65 a troy ounce, Tuesday’s low and resistance at USD1,765.85 a troy ounce, the high of February 3.
Reports that Greek officials were working on the final draft of a bailout agreement in front of a meeting between Greek Prime Minister Lucas Papademos and coalition leaders yesterday ignited risk appetite.
However, this meeting was postponed as the Prime Minister decided to meet with the troika of the European Commission, the European Central Bank and the International Monetary Fund to negotiate the terms needed to obtain a second bailout package
Greek policy makers have already agreed on cuts equal to 1.5% of the island nation’s gross domestic product.
However, they are yet to agree on how to recapitalize banks, reduce wages and ensure the survival of pension funds.
These delays have reignited fears of a Greek default and euro zone collapse leading to the bearish metal environment.
It is critical that the agreement be approved by February 15 for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.11% to trade at 78.69.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Ben Bernanke vowed to keep interest rates low despite the strong showing in the unemployment figures earlier, adding to the risk on, gold negative session.
Elsewhere on the Comex, silver for March delivery dropped 0.74% to trade at USD33.94 a troy ounce, while copper for March delivery gained 0.68% to trade at USD3.90 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1735.35 a troy ounce during late U.S. trade giving back 0.75%.
It earlier advanced by as much as 0.37% to trade at a three day high of USD1754.65 a troy ounce.
Futures were likely to find support at USD1,712.65 a troy ounce, Tuesday’s low and resistance at USD1,765.85 a troy ounce, the high of February 3.
Reports that Greek officials were working on the final draft of a bailout agreement in front of a meeting between Greek Prime Minister Lucas Papademos and coalition leaders yesterday ignited risk appetite.
However, this meeting was postponed as the Prime Minister decided to meet with the troika of the European Commission, the European Central Bank and the International Monetary Fund to negotiate the terms needed to obtain a second bailout package
Greek policy makers have already agreed on cuts equal to 1.5% of the island nation’s gross domestic product.
However, they are yet to agree on how to recapitalize banks, reduce wages and ensure the survival of pension funds.
These delays have reignited fears of a Greek default and euro zone collapse leading to the bearish metal environment.
It is critical that the agreement be approved by February 15 for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.11% to trade at 78.69.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Ben Bernanke vowed to keep interest rates low despite the strong showing in the unemployment figures earlier, adding to the risk on, gold negative session.
Elsewhere on the Comex, silver for March delivery dropped 0.74% to trade at USD33.94 a troy ounce, while copper for March delivery gained 0.68% to trade at USD3.90 a pound.