Investing.com – Gold futures edged higher on Wednesday, recouping some of the previous session’s losses as a weaker U.S. dollar and uncertainty ahead of a summit meeting of European Union leaders on Thursday underlined the appeal of the metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,591.75 a troy ounce during late Asian trade, climbing 0.22%.
It earlier rose as much as 0.27% to trade at a daily high of USD1,592.65 a troy ounce.
Gold prices snapped eleven consecutive days of gains on Tuesday, slumping nearly 1.1% after U.S. President Barack Obama said there had been “some progress” in talks with lawmakers on raising the USD14.3 trillion U.S. debt limit, boosting optimism that a deal would be reached before the August 2 deadline.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2% to trade at 75.33, hovering close to a one-week low.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, euro zone finance ministers were to meet on Thursday to focus on “the financial stability of the euro area as a whole and the future financing of the Greek program,” according to the president of the European Council, Herman Van Rompuy.
German Chancellor Angela Merkel said Tuesday that Europe’s fiscal crisis can’t be resolved “in one step”, dampening hopes that euro zone leaders would resolve the region’s debt woes at the summit.
Global financial service provider Credit Agricole said late Tuesday that there was “no reason to sell gold in the current environment.”
In a report, the bank said that gold prices would remain supported in the near-term, citing ongoing debt concerns in the U.S. and Europe, as well as accelerating inflation in Asia.
Elsewhere, silver for September delivery advanced 0.7% to trade at USD39.32 a troy ounce, while copper for September delivery dipped 0.4% to trade at USD4.454 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,591.75 a troy ounce during late Asian trade, climbing 0.22%.
It earlier rose as much as 0.27% to trade at a daily high of USD1,592.65 a troy ounce.
Gold prices snapped eleven consecutive days of gains on Tuesday, slumping nearly 1.1% after U.S. President Barack Obama said there had been “some progress” in talks with lawmakers on raising the USD14.3 trillion U.S. debt limit, boosting optimism that a deal would be reached before the August 2 deadline.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2% to trade at 75.33, hovering close to a one-week low.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, euro zone finance ministers were to meet on Thursday to focus on “the financial stability of the euro area as a whole and the future financing of the Greek program,” according to the president of the European Council, Herman Van Rompuy.
German Chancellor Angela Merkel said Tuesday that Europe’s fiscal crisis can’t be resolved “in one step”, dampening hopes that euro zone leaders would resolve the region’s debt woes at the summit.
Global financial service provider Credit Agricole said late Tuesday that there was “no reason to sell gold in the current environment.”
In a report, the bank said that gold prices would remain supported in the near-term, citing ongoing debt concerns in the U.S. and Europe, as well as accelerating inflation in Asia.
Elsewhere, silver for September delivery advanced 0.7% to trade at USD39.32 a troy ounce, while copper for September delivery dipped 0.4% to trade at USD4.454 a pound.