Investing.com – Gold futures edged modestly higher on Friday, paring a weekly loss as growing speculation over a potential Greek default sparked sharp losses in global equity markets and underlined the safe haven appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery settled at USD1,856.05 a troy ounce by close of trade on Friday, retreating 1.2% over the week.
Concerns over a Greek debt default intensified on Friday after Bloomberg News reported that Germany’s Finance Ministry was studying the impact of a possible Greek default, including a scenario in which the debt-laden country exited the euro zone.
Adding to investors’ nervousness over the region’s debt crisis, European Central Bank Governing Council member Juergen Stark announced his resignation, sparking speculation that it was due to a disagreement over the ECB’s bond-buying program.
The news sent Greek government bond yields to a euro-lifetime high and sparked heavy losses in European and U.S. equity markets.
However, a broadly stronger U.S. dollar limited any significant gains for gold. The greenback jumped to a six-month high against the euro, while the dollar index rallied 1.77% on Friday to settle at 77.72, the highest since February 23.
Swiss investment bank UBS in a report on Friday raised its 2012 gold price forecast to USD2,075 an ounce from a previous projection of USD1,380 an ounce, citing the euro zone debt crisis and lower interest rates as key factors driving prices higher.
On Thursday, gold prices jumped nearly 2.85% after Federal Reserve Chairman Ben Bernanke reiterated that the central bank had a range of policy tools to stimulate the U.S. economy, but stopped short of providing further details.
Gold found further support amid speculation that many of the measures outlined in President Barack Obama’s proposed USD447 billion stimulus plan would not gain approval of U.S. lawmakers.
On Tuesday, gold prices rose to an all-time high of USD1,921.05 a troy ounce amid widespread risk aversion, before pulling back sharply as profit taking ensued.
Elsewhere on the Comex, silver for December delivery traded at USD43.31 a troy ounce by close of trade on Friday, climbing 3.75% on the week, while copper for December delivery settled at USD4.101 a pound, easing down 0.12% on the week.
In the week ahead, gold traders will be focusing on developments in the euro zone and the outcome of the weekend meeting of G7 leaders.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery settled at USD1,856.05 a troy ounce by close of trade on Friday, retreating 1.2% over the week.
Concerns over a Greek debt default intensified on Friday after Bloomberg News reported that Germany’s Finance Ministry was studying the impact of a possible Greek default, including a scenario in which the debt-laden country exited the euro zone.
Adding to investors’ nervousness over the region’s debt crisis, European Central Bank Governing Council member Juergen Stark announced his resignation, sparking speculation that it was due to a disagreement over the ECB’s bond-buying program.
The news sent Greek government bond yields to a euro-lifetime high and sparked heavy losses in European and U.S. equity markets.
However, a broadly stronger U.S. dollar limited any significant gains for gold. The greenback jumped to a six-month high against the euro, while the dollar index rallied 1.77% on Friday to settle at 77.72, the highest since February 23.
Swiss investment bank UBS in a report on Friday raised its 2012 gold price forecast to USD2,075 an ounce from a previous projection of USD1,380 an ounce, citing the euro zone debt crisis and lower interest rates as key factors driving prices higher.
On Thursday, gold prices jumped nearly 2.85% after Federal Reserve Chairman Ben Bernanke reiterated that the central bank had a range of policy tools to stimulate the U.S. economy, but stopped short of providing further details.
Gold found further support amid speculation that many of the measures outlined in President Barack Obama’s proposed USD447 billion stimulus plan would not gain approval of U.S. lawmakers.
On Tuesday, gold prices rose to an all-time high of USD1,921.05 a troy ounce amid widespread risk aversion, before pulling back sharply as profit taking ensued.
Elsewhere on the Comex, silver for December delivery traded at USD43.31 a troy ounce by close of trade on Friday, climbing 3.75% on the week, while copper for December delivery settled at USD4.101 a pound, easing down 0.12% on the week.
In the week ahead, gold traders will be focusing on developments in the euro zone and the outcome of the weekend meeting of G7 leaders.