Investing.com - Gold futures were mildly higher during U.S. morning trade on Monday, as some safe-haven buying supported the precious metal amid doubts over progress on the euro zone’s debt crisis at an upcoming European Union summit.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,574.95 a troy ounce during U.S. morning trade, gaining 0.5%.
It earlier rose by as much as 0.75% to trade at a session high of USD1,577.25 a troy ounce. Prices fell to as low as USD1,559.15 a troy ounce on Friday, the lowest since June 8.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,605.25, the high from June 21.
Gold found some safe-haven support as market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners earlier in the day. Spain’s economy minister said the amount should be enough to cover the needs of all banks and provide an additional security buffer.
The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Some bargain buying further supported prices, as markets players returned to the market to seek cheap valuations following last week’s sell-off.
Gold futures retreated 3% last week after the Federal Reserve stopped short of launching a third round of quantitative easing.
From a technical standpoint, support for gold is found around the USD1,540-area and upside resistance at USD1,640. Bullion rose toward that level several times earlier in June but failed in each attempt.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 12.5% since late February, amid a lack of aggressive Federal Reserve stimulus and growing concerns the European debt crisis has been escalating, which has fueled demand for the yellow metal's hedge, the greenback.
Elsewhere on the Comex, silver for September delivery added 0.25% to trade at USD26.79 a troy ounce, while copper for September delivery declined 0.55% to trade at USD3.297 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,574.95 a troy ounce during U.S. morning trade, gaining 0.5%.
It earlier rose by as much as 0.75% to trade at a session high of USD1,577.25 a troy ounce. Prices fell to as low as USD1,559.15 a troy ounce on Friday, the lowest since June 8.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,605.25, the high from June 21.
Gold found some safe-haven support as market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners earlier in the day. Spain’s economy minister said the amount should be enough to cover the needs of all banks and provide an additional security buffer.
The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Some bargain buying further supported prices, as markets players returned to the market to seek cheap valuations following last week’s sell-off.
Gold futures retreated 3% last week after the Federal Reserve stopped short of launching a third round of quantitative easing.
From a technical standpoint, support for gold is found around the USD1,540-area and upside resistance at USD1,640. Bullion rose toward that level several times earlier in June but failed in each attempt.
Gold gained as much as 15% earlier this year to hit USD1,790 an ounce after the Fed said in January it would keep interest rates near zero until at least late 2014 and indicated that it could introduce a fresh round of asset-purchases.
However, prices have lost almost 12.5% since late February, amid a lack of aggressive Federal Reserve stimulus and growing concerns the European debt crisis has been escalating, which has fueled demand for the yellow metal's hedge, the greenback.
Elsewhere on the Comex, silver for September delivery added 0.25% to trade at USD26.79 a troy ounce, while copper for September delivery declined 0.55% to trade at USD3.297 a pound.