Investing.com – Gold futures edged lower on Wednesday, as a broadly stronger U.S. dollar dampened the appeal of the precious metal, while mounting fears over the euro zone’s sovereign debt crisis continued to lend support.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,824.75 a troy ounce during late Asian trade, dipping 0.15%.
It earlier fell as much as 0.7% to trade at a daily low of USD1,820.55 a troy ounce.
Concerns over the euro zone’s debt crisis intensified after ratings agency Moody’s downgraded the credit ratings of two of France’s three largest banks, Societe Generale and Credit Agricole, citing their exposure to Greek debt.
The news saw risk aversion sharpen, boosting demand for the U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.42% to trade at 77.93, hovering close to a six-month high.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Gold prices remained supported as markets awaited a conference call planned between German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou later in the day.
Worries over the region’s third largest economy also lent support after Italy saw borrowing costs surge to the highest level since the introduction of the single currency in 1999 on Tuesday.
German lender Commerzbank said in a report late Tuesday, "The debt crisis of euro zone peripherals remains the dominant issue supporting gold”
The lender recommended “buying gold on dips” as the precious metal should remain in demand as a safe haven.
Elsewhere on the Comex, silver for December delivery slumped 0.83% to trade at USD40.85 a troy ounce, while copper for December delivery shed 0.68% to trade USD3.946 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,824.75 a troy ounce during late Asian trade, dipping 0.15%.
It earlier fell as much as 0.7% to trade at a daily low of USD1,820.55 a troy ounce.
Concerns over the euro zone’s debt crisis intensified after ratings agency Moody’s downgraded the credit ratings of two of France’s three largest banks, Societe Generale and Credit Agricole, citing their exposure to Greek debt.
The news saw risk aversion sharpen, boosting demand for the U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.42% to trade at 77.93, hovering close to a six-month high.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Gold prices remained supported as markets awaited a conference call planned between German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou later in the day.
Worries over the region’s third largest economy also lent support after Italy saw borrowing costs surge to the highest level since the introduction of the single currency in 1999 on Tuesday.
German lender Commerzbank said in a report late Tuesday, "The debt crisis of euro zone peripherals remains the dominant issue supporting gold”
The lender recommended “buying gold on dips” as the precious metal should remain in demand as a safe haven.
Elsewhere on the Comex, silver for December delivery slumped 0.83% to trade at USD40.85 a troy ounce, while copper for December delivery shed 0.68% to trade USD3.946 a pound.