Investing.com - Gold futures were higher for a second day during early European trade on Wednesday, after the Wall Street Journal said Federal Reserve officials were moving closer to steps to spur activity and hiring.
Some safe haven bids further boosted the precious metal, amid concerns soaring borrowing costs for Spain will force the country to seek a bailout.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,588.15 a troy ounce during early European trade, climbing 0.75%.
It earlier rose by as much as 0.85% to trade at USD1,589.75 a troy ounce, the highest since July 20.
Gold futures were likely to find support at USD1,554.55 a troy ounce, the low from July 12 and near-term resistance at USD1,591.35, the high from July 19.
Gold prices turned higher towards the end of the U.S. session on Tuesday after the Wall Street Journal reported that a growing number of Fed officials have concluded that the central bank needs to expand its stimulus program in order to boost growth and increase job hiring.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
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% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Meanwhile, investors continued to monitor developments surrounding the euro zone’s ongoing debt crisis.
The yield on Spanish 10-year bonds rose to a record 7.73% early Wednesday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full-scale bailout.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout.
Adding to the gloom, ratings agency Moody’s lowered its outlook on the triple-A long-term rating of the region’s bailout fund, the European Financial Stability Facility, to negative from stable.
The move follows similar revisions to the outlooks on the sovereign ratings of Germany, the Netherlands and Luxembourg. Moody’s rates all three at AAA.
Elsewhere on the Comex, silver for September delivery rose 0.7% to trade at USD26.99 a troy ounce, while copper for September delivery eased up 0.3% to trade at USD3.362 a pound.
Some safe haven bids further boosted the precious metal, amid concerns soaring borrowing costs for Spain will force the country to seek a bailout.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,588.15 a troy ounce during early European trade, climbing 0.75%.
It earlier rose by as much as 0.85% to trade at USD1,589.75 a troy ounce, the highest since July 20.
Gold futures were likely to find support at USD1,554.55 a troy ounce, the low from July 12 and near-term resistance at USD1,591.35, the high from July 19.
Gold prices turned higher towards the end of the U.S. session on Tuesday after the Wall Street Journal reported that a growing number of Fed officials have concluded that the central bank needs to expand its stimulus program in order to boost growth and increase job hiring.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
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% since late February, as the Fed failed to deliver more easing and amid concerns over the euro zone’s deepening debt crisis, which has fueled demand for the precious metal's hedge, the greenback.
Meanwhile, investors continued to monitor developments surrounding the euro zone’s ongoing debt crisis.
The yield on Spanish 10-year bonds rose to a record 7.73% early Wednesday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full-scale bailout.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout.
Adding to the gloom, ratings agency Moody’s lowered its outlook on the triple-A long-term rating of the region’s bailout fund, the European Financial Stability Facility, to negative from stable.
The move follows similar revisions to the outlooks on the sovereign ratings of Germany, the Netherlands and Luxembourg. Moody’s rates all three at AAA.
Elsewhere on the Comex, silver for September delivery rose 0.7% to trade at USD26.99 a troy ounce, while copper for September delivery eased up 0.3% to trade at USD3.362 a pound.