Investing.com – Gold futures edged higher on Thursday, reclaiming the USD1,600 an ounce level on the back of a broadly weaker U.S. dollar, while investors awaited the outcome of a summit meeting of European leaders later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,602.55 a troy ounce during late Asian trade, climbing 0.15%.
It earlier rose as much as 0.25% to trade at USD1,604.95 a troy ounce, the highest price since July 19, when prices rose to a record high USD1,610.35.
The Financial Times newspaper reported earlier that France and Germany reached a joint agreement on a Greek bailout package, but no details were revealed.
The announcement came after German Chancellor Angela Merkel and French President Nicholas Sarkozy held a meeting, ahead of a summit in Brussels of all 17 euro zone leaders later in the day.
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 0.36% to trade at 74.85, the lowest since July 5.
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.
Gold prices were also supported after 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.
Gold is often considered a safe haven in times of economic uncertainty and a hedge against financial risk.
Elsewhere on the Comex, silver for September delivery advanced 0.25% to trade at USD40.15 a troy ounce, while copper for September delivery dipped 0.22% to trade at USD4.422 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,602.55 a troy ounce during late Asian trade, climbing 0.15%.
It earlier rose as much as 0.25% to trade at USD1,604.95 a troy ounce, the highest price since July 19, when prices rose to a record high USD1,610.35.
The Financial Times newspaper reported earlier that France and Germany reached a joint agreement on a Greek bailout package, but no details were revealed.
The announcement came after German Chancellor Angela Merkel and French President Nicholas Sarkozy held a meeting, ahead of a summit in Brussels of all 17 euro zone leaders later in the day.
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 0.36% to trade at 74.85, the lowest since July 5.
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.
Gold prices were also supported after 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.
Gold is often considered a safe haven in times of economic uncertainty and a hedge against financial risk.
Elsewhere on the Comex, silver for September delivery advanced 0.25% to trade at USD40.15 a troy ounce, while copper for September delivery dipped 0.22% to trade at USD4.422 a pound.