Investing.com – Gold futures eased down on Tuesday, as some mild profit taking emerged following the previous session’s record high, while growing fears over a possible U.S. sovereign debt default and a weaker U.S. dollar supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,612.45 a troy ounce during U.S. morning trade, edging 0.2% lower.
It earlier fell as much as 0.4% to trade at a daily low of USD1,609.35 a troy ounce.
Gold prices rallied to a record high of USD1,625.05 a troy ounce in the previous session, as the safe haven appeal of the precious metal was boosted amid a lack of progress to lift the U.S. debt ceiling and after Greece’s credit rating was downgraded.
However, the rally prompted some investors to sell their position on profit taking and lock in gains.
Meanwhile, U.S. President Barack Obama said in an address from the White House late Monday that the current debt standoff was a “dangerous game” and warned that a failure to increase the U.S. borrowing limit would severely damage the economy.
In a speech following the President’s address, House Speaker John Boehner said the president wanted “a blank check” to continue spending.
Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans have vowed that any compromise must not include higher taxes.
Any budget plan to raise the debt limit before the looming deadline must pass both the Republican-controlled House and the Democratic-run Senate and be signed by President Obama.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.72% to trade at 73.77, after falling earlier to 73.69, the lowest since May 5.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Elsewhere on the Comex, silver for September delivery shed 0.45% to trade at USD40.17 a troy ounce, while copper for September delivery jumped 1.45% to trade at USD4.471 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,612.45 a troy ounce during U.S. morning trade, edging 0.2% lower.
It earlier fell as much as 0.4% to trade at a daily low of USD1,609.35 a troy ounce.
Gold prices rallied to a record high of USD1,625.05 a troy ounce in the previous session, as the safe haven appeal of the precious metal was boosted amid a lack of progress to lift the U.S. debt ceiling and after Greece’s credit rating was downgraded.
However, the rally prompted some investors to sell their position on profit taking and lock in gains.
Meanwhile, U.S. President Barack Obama said in an address from the White House late Monday that the current debt standoff was a “dangerous game” and warned that a failure to increase the U.S. borrowing limit would severely damage the economy.
In a speech following the President’s address, House Speaker John Boehner said the president wanted “a blank check” to continue spending.
Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans have vowed that any compromise must not include higher taxes.
Any budget plan to raise the debt limit before the looming deadline must pass both the Republican-controlled House and the Democratic-run Senate and be signed by President Obama.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.72% to trade at 73.77, after falling earlier to 73.69, the lowest since May 5.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Elsewhere on the Comex, silver for September delivery shed 0.45% to trade at USD40.17 a troy ounce, while copper for September delivery jumped 1.45% to trade at USD4.471 a pound.