Investing.com – Gold futures edged lower on Thursday, as a broadly stronger U.S. dollar dimmed the appeal of the precious metal, but losses were limited amid mounting fears over a possible Greek default.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,528.65 a troy ounce during late Asian trade, shedding 0.18%.
It earlier fell to a daily low of USD1,525.55 a troy ounce.
The euro fell to a three-week low against the U.S. dollar as escalating concerns that Greece was moving closer to defaulting drove the cost of insuring the country’s sovereign debt against default to euro lifetime highs.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 76.25, after earlier rising to 76.40, the highest since May 25.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Despite the pullback, gold prices were expected to remain well-supported by worries over Greece’s debt woes.
Greek Prime Minister George Papandreou said that he will name a new government and call a vote of confidence in Parliament later in the day, after protestors rioting against austerity measures clashed with police in Athens on Wednesday.
Meanwhile, disappointing U.S. economic data on manufacturing activity in the New York region and industrial production added to concerns over the U.S. economic outlook and diminished expectations for an imminent tightening in U.S. monetary policy.
Gold is often considered a haven against political turmoil or economic downturns, in part because it is not as linked to industrial production as other commodities and equities are.
Elsewhere, silver for July delivery slumped 0.62% to trade at USD35.54 a troy ounce during late Asian trade.
BNP Paribas lowered its outlook on silver prices to USD37.70 an ounce in 2011, from a previous estimate of USD41.40. In 2012, it expects silver prices to average USD38.10, up from a prior forecast of USD37.80.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,528.65 a troy ounce during late Asian trade, shedding 0.18%.
It earlier fell to a daily low of USD1,525.55 a troy ounce.
The euro fell to a three-week low against the U.S. dollar as escalating concerns that Greece was moving closer to defaulting drove the cost of insuring the country’s sovereign debt against default to euro lifetime highs.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 76.25, after earlier rising to 76.40, the highest since May 25.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Despite the pullback, gold prices were expected to remain well-supported by worries over Greece’s debt woes.
Greek Prime Minister George Papandreou said that he will name a new government and call a vote of confidence in Parliament later in the day, after protestors rioting against austerity measures clashed with police in Athens on Wednesday.
Meanwhile, disappointing U.S. economic data on manufacturing activity in the New York region and industrial production added to concerns over the U.S. economic outlook and diminished expectations for an imminent tightening in U.S. monetary policy.
Gold is often considered a haven against political turmoil or economic downturns, in part because it is not as linked to industrial production as other commodities and equities are.
Elsewhere, silver for July delivery slumped 0.62% to trade at USD35.54 a troy ounce during late Asian trade.
BNP Paribas lowered its outlook on silver prices to USD37.70 an ounce in 2011, from a previous estimate of USD41.40. In 2012, it expects silver prices to average USD38.10, up from a prior forecast of USD37.80.