Investing.com - Gold futures held near the previous session’s three-week high during European morning hours on Monday, as uncertainty surrounding Greece’s bailout plan and mounting fears over the looming fiscal crisis in the U.S. boosted the precious metal’s appeal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,735.55 a troy ounce during European morning trade, up 0.25% on the day.
Prices held in a tight trading range between USD1,732.35 a troy ounce, the daily low and a session high of USD1,735.95 a troy ounce. On Friday, prices rose to a three-week high of USD1,738.75 a troy ounce.
Gold prices were likely to find near-term support at USD1,703.05 a troy ounce, the low from November 7 and resistance at USD1,744.25, the high from October 19.
Greece’s government approved a budget of spending cuts and tax increases for next year, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Finance ministers from the euro zone were to hold talks in Brussels later in the day, to discuss unlocking Greece’s next tranche of aid.
Ahead of the meeting, German Finance Minister Wolfgang Schauble told a German newspaper on Sunday that he did not expect a conclusion to be reached at the meeting.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Meanwhile, investors remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Ratings agency Fitch warned last week that the U.S.’s triple-A rating would be at risk if Congress and President Barack Obama did not immediately take action to avoid the crisis.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011.
Indications of strong demand from China and India, the world’s two largest gold consumers, provided further support.
Official data showed that China's gold imports from Hong Kong totaled 69.7 tons in September, 30% higher than the preceding month.
In India, officials said demand for the precious metal was expected to climb by as much as 15% in the current quarter due to a decline in prices and festival demand.
Elsewhere on the Comex, silver for December delivery rose 0.25% to trade at USD32.67 a troy ounce, while copper for December delivery eased up 0.1% to trade at USD3.446 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,735.55 a troy ounce during European morning trade, up 0.25% on the day.
Prices held in a tight trading range between USD1,732.35 a troy ounce, the daily low and a session high of USD1,735.95 a troy ounce. On Friday, prices rose to a three-week high of USD1,738.75 a troy ounce.
Gold prices were likely to find near-term support at USD1,703.05 a troy ounce, the low from November 7 and resistance at USD1,744.25, the high from October 19.
Greece’s government approved a budget of spending cuts and tax increases for next year, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Finance ministers from the euro zone were to hold talks in Brussels later in the day, to discuss unlocking Greece’s next tranche of aid.
Ahead of the meeting, German Finance Minister Wolfgang Schauble told a German newspaper on Sunday that he did not expect a conclusion to be reached at the meeting.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Meanwhile, investors remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Ratings agency Fitch warned last week that the U.S.’s triple-A rating would be at risk if Congress and President Barack Obama did not immediately take action to avoid the crisis.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011.
Indications of strong demand from China and India, the world’s two largest gold consumers, provided further support.
Official data showed that China's gold imports from Hong Kong totaled 69.7 tons in September, 30% higher than the preceding month.
In India, officials said demand for the precious metal was expected to climb by as much as 15% in the current quarter due to a decline in prices and festival demand.
Elsewhere on the Comex, silver for December delivery rose 0.25% to trade at USD32.67 a troy ounce, while copper for December delivery eased up 0.1% to trade at USD3.446 a pound.