Investing.com – Gold futures moved higher in Asian trade Wednesday, as the fate of Europe’s rescue package for debt-threatened nations remained in limbo, after Slovakia delayed a vote on expanding the fund.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,666.35 a troy ounce during early Asian trade, climbing 0.30%, after hitting a low of USDS1,662.25.
Slovakia’s Parliament, on Tuesday, postponed a vote on expanding the USD600 billion European Financial Stability Facility, raising new concerns over the region’s ability to stem the spread of debt in the euro-zone.
Slovakia, the poorest member of the 17-nation common currency, remained the final member to vote on the bailout fund.
Earlier in the day, representative of the so-called troika, the European Union, International Monetary Fund, and European Central Bank, said Greece was likely to receive its USD10.9 billion rescue tranche by early November, allowing Athens to avert default.
Meanwhile, European Commission President Jose Manuel Barroso said he was prepared to unveil a plan for recapitalizing European banks later Wednesday.
Elsewhere, French bank Societe General said in a report that while the lender remains “broadly bullish” on gold, it had lowered its forecast.
Societe General predicted gold prices to average USD2,175 a troy ounce in 2012, down from its previous forecast of USD2,275 an ounce for next year.
A rising dollar limited gold’s upside, as a stronger greenback makes gold futures purchases more expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was higher by 0.12% to 78.02.
On the Comex, silver for December delivery fell 0.16% to trade at USD32.09 a troy ounce, while copper for December delivery lost 0.28% to trade at USD3.278 a pound.