Investing.com – Gold futures were down for a third day on Wednesday, as investors awaited further developments over a plan to resolve the euro zone’s debt crisis, while strong physical demand in Asia underpinned prices.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,651.05 a troy ounce during late Asian trade, easing down 0.11%.
It earlier fell by as much as 0.3% to trade at a daily low of USD1,648.75 a troy ounce.
The Guardian newspaper reported late Tuesday that France and Germany had agreed to add EUR2 trillion to the European Financial Stability Facility, with the move to be announced this weekend, citing unidentified European Union diplomats. However, the report was subsequently denied by EU officials.
Meanwhile, ratings agency Moody’s cut Spain’s credit rating by two notches late Tuesday to A1 from Aa2, citing high levels of debt in the banking and corporate sectors.
Moody’s said it was maintaining a negative outlook on Spain’s rating to reflect the “downside risks from a potential further escalation of the euro area crisis.”
Meanwhile, strong physical demand for the precious metal in Asia supported prices. In top buyer India, consumers continued to increase purchases of bullion ahead of the gold-buying wedding and festival season due to start in late October.
Prithviraj Kothari, president of the Bombay Bullion Association said earlier that he sees “robust bullion sales” in the October-December quarter, citing “seasonal buying and increased investment interest."
Global financial service provider Barclays said in a report earlier, "We continue to expect gold prices to be cushioned amid the seasonally strong period for physical demand, which remains key before investment demand returns to the driver's seat."
Elsewhere on the Comex, silver for December delivery dropped 0.86% to trade at USD31.55 a troy ounce, while copper for December delivery slumped 1.15% to trade at USD3.321 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,651.05 a troy ounce during late Asian trade, easing down 0.11%.
It earlier fell by as much as 0.3% to trade at a daily low of USD1,648.75 a troy ounce.
The Guardian newspaper reported late Tuesday that France and Germany had agreed to add EUR2 trillion to the European Financial Stability Facility, with the move to be announced this weekend, citing unidentified European Union diplomats. However, the report was subsequently denied by EU officials.
Meanwhile, ratings agency Moody’s cut Spain’s credit rating by two notches late Tuesday to A1 from Aa2, citing high levels of debt in the banking and corporate sectors.
Moody’s said it was maintaining a negative outlook on Spain’s rating to reflect the “downside risks from a potential further escalation of the euro area crisis.”
Meanwhile, strong physical demand for the precious metal in Asia supported prices. In top buyer India, consumers continued to increase purchases of bullion ahead of the gold-buying wedding and festival season due to start in late October.
Prithviraj Kothari, president of the Bombay Bullion Association said earlier that he sees “robust bullion sales” in the October-December quarter, citing “seasonal buying and increased investment interest."
Global financial service provider Barclays said in a report earlier, "We continue to expect gold prices to be cushioned amid the seasonally strong period for physical demand, which remains key before investment demand returns to the driver's seat."
Elsewhere on the Comex, silver for December delivery dropped 0.86% to trade at USD31.55 a troy ounce, while copper for December delivery slumped 1.15% to trade at USD3.321 a pound.