Investing.com – Gold futures were down on Thursday, falling below the USD1,600 an ounce level as optimism euro zone officials were nearing a deal on a second bailout package for Greece reduced the safe haven appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,595.45 a troy ounce during U.S. morning trade, edging 0.3% lower.
It earlier fell as much as 0.45% to trade at a daily low of USD1,593.05 a troy ounce.
European leaders meeting in Brussels outlined a plan to handle Greece's sovereign debt woes, proposing to extend loan maturities and lower interest rates for heavily indebted euro zone countries.
A draft of the proposed plan showed that the euro zone would reduce interest rates on bailout loans from the European Financial Stability Fund to 3.5%, while extending loan maturities to at least 15 years.
The plan would also allow the EFSF to make precautionary purchases in the secondary bond market.
Gold prices remained supported as the euro jumped to a two-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against of six other major currencies was down 0.92% to trade at 74.44, the lowest since June 9.
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, in the U.S., a proposal for a USD3.7 trillion debt-cutting plan faced resistance from House Republicans, adding to fears over a potential default ahead of the August 2 deadline to lift the country’s USD14.3 trillion debt ceiling.
President Barack Obama planned to renew talks at the White House with congressional leaders as the Democratic-led Senate and Republican-controlled House intensify efforts to reach an agreement to avert a default.
Elsewhere on the Comex, silver for September delivery fell 0.9% to trade at USD39.69 a troy ounce, while copper for September delivery declined 0.5% to trade at USD4.411 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,595.45 a troy ounce during U.S. morning trade, edging 0.3% lower.
It earlier fell as much as 0.45% to trade at a daily low of USD1,593.05 a troy ounce.
European leaders meeting in Brussels outlined a plan to handle Greece's sovereign debt woes, proposing to extend loan maturities and lower interest rates for heavily indebted euro zone countries.
A draft of the proposed plan showed that the euro zone would reduce interest rates on bailout loans from the European Financial Stability Fund to 3.5%, while extending loan maturities to at least 15 years.
The plan would also allow the EFSF to make precautionary purchases in the secondary bond market.
Gold prices remained supported as the euro jumped to a two-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against of six other major currencies was down 0.92% to trade at 74.44, the lowest since June 9.
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, in the U.S., a proposal for a USD3.7 trillion debt-cutting plan faced resistance from House Republicans, adding to fears over a potential default ahead of the August 2 deadline to lift the country’s USD14.3 trillion debt ceiling.
President Barack Obama planned to renew talks at the White House with congressional leaders as the Democratic-led Senate and Republican-controlled House intensify efforts to reach an agreement to avert a default.
Elsewhere on the Comex, silver for September delivery fell 0.9% to trade at USD39.69 a troy ounce, while copper for September delivery declined 0.5% to trade at USD4.411 a pound.