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Gold futures edge higher as Greece austerity vote eyed

Published 06/28/2011, 03:36 AM
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Investing.com – Gold futures edged higher on Tuesday, easing off a five-week low as some safe-haven buying emerged ahead of a key parliamentary vote on austerity measures in Greece later in the week.  

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,503.05 a troy ounce during late Asian trade, gaining 0.38%.              

It earlier rose as much as 0.4% to trade at a daily high of USD1,503.35 a troy ounce.

Greece's Parliament is due to vote Wednesday on the EUR28.4 billion, five-year austerity package that must be approved in order to receive a second tranche of bailout loans needed to avert a sovereign debt default.

Greek Prime Minister George Papandreou urged lawmakers to obey their “patriotic conscience” and back tougher austerity measures, as they began to debate a five-year budget plan on Monday.

Greek newspaper Ekathimerini reported Monday that as many as four parliamentary members of Papandreou’s ruling Pasok party are considering voting against the austerity plan. Pasok holds a five-seat majority in the 300-seat chamber.

Meanwhile, the country's unions have launched a 48-hour nationwide strike starting Tuesday, in protest of the austerity measures.

Global financial service provider Commerzbank said in a report late Monday that gold prices have been “unable to profit from continued high-risk aversion of market players," as it has been pressured by the currency markets.

The lender added that it does not expect gold prices “to retreat much further”, as it is still uncertain whether parliament will support the austerity measures.

Weakness in the dollar also contributed to gold’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% to trade at 75.67.

Elsewhere, silver for September delivery jumped 1.5% to trade at USD34.03 a troy ounce during late Asian trade, while copper for September delivery dipped 0.1% to trade at USD4.085 a pound.

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