Investing.com – Gold futures edged lower on Wednesday, as a broadly stronger U.S. dollar reduced the appeal of the precious metal, but losses were limited amid ongoing uncertainty over Greece’s debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.65 a troy ounce during late Asian trade, shedding 0.2%.
It earlier fell to a daily low of USD1,521.55 a troy ounce.
The U.S. dollar advanced against the euro after euro zone finance ministers failed to reach an agreement on a second Greek bailout plan on Tuesday, adding to investors’ nervousness over the country’s debt crisis.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.4% to trade at 75.11, a two-day 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.
Global financial service provider Credit Suisse said in a report earlier, "It is a bit of a double-edged sword, because in theory any debt, any currency woes should play into gold's strength. But on the other hand if the euro is pummeled and the dollar strengthens, they offset each other.”
Despite the pullback, gold prices were expected to remain well-supported by worries over Greece’s debt woes.
A Greek lawmaker resigned Tuesday from the governing Socialists party to protest the austerity push of Prime Minister George Papandreou. Later in the day, the country’s parliament was to vote on austerity measures.
Greece became the lowest-rated country in the world on the scale used by Standard & Poor's, which downgraded it this week to eight notches below junk status.
Elsewhere, silver for July delivery slumped 0.66% to trade at USD35.20 a troy ounce during late Asian trade, while copper for July delivery fell 0.53% to trade at USD4.135 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.65 a troy ounce during late Asian trade, shedding 0.2%.
It earlier fell to a daily low of USD1,521.55 a troy ounce.
The U.S. dollar advanced against the euro after euro zone finance ministers failed to reach an agreement on a second Greek bailout plan on Tuesday, adding to investors’ nervousness over the country’s debt crisis.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.4% to trade at 75.11, a two-day 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.
Global financial service provider Credit Suisse said in a report earlier, "It is a bit of a double-edged sword, because in theory any debt, any currency woes should play into gold's strength. But on the other hand if the euro is pummeled and the dollar strengthens, they offset each other.”
Despite the pullback, gold prices were expected to remain well-supported by worries over Greece’s debt woes.
A Greek lawmaker resigned Tuesday from the governing Socialists party to protest the austerity push of Prime Minister George Papandreou. Later in the day, the country’s parliament was to vote on austerity measures.
Greece became the lowest-rated country in the world on the scale used by Standard & Poor's, which downgraded it this week to eight notches below junk status.
Elsewhere, silver for July delivery slumped 0.66% to trade at USD35.20 a troy ounce during late Asian trade, while copper for July delivery fell 0.53% to trade at USD4.135 a pound.