Investing.com - Gold futures erased gains on Wednesday, easing off a three-day high as the dollar index recovered from early losses and entered positive territory while investors remained wary in the absence of a breakthrough on a second bailout deal for Greece.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,744.35 a troy ounce during early U.S. morning trade, edging 0.23% lower.
It earlier rose by as much as 0.37% to trade at a three-day high of USD1,754.65 a troy ounce.
Futures were likely to find support at USD1,712.65 a troy ounce, Tuesday’s low and short-term resistance at USD1,765.85, the high from February 3.
Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece's three political parties later in the day to discuss the terms of new austerity measures being demanded in return for a second bailout worth EUR130 billion.
Athens is also in talks with private-sector creditors over a planned EUR100 billion debt swap deal, which is also a precondition for the new aid package.
European Union officials have said a final agreement the bailout much be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
The uncertainty surrounding the Greek debt talks saw the euro retreat from an eight-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.1% to trade at 78.66, after being down by as much as 0.11% earlier.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Gold prices remained supported after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment unexpectedly fell to a three-year low.
In testimony to the Senate Budget Committee in Washington on Tuesday Bernanke said the decline in the jobless rate understated weakness in the labor market and that the economic outlook remains “uncertain”.
Elsewhere on the Comex, silver for March delivery eased up 0.02% to trade at USD34.20 a troy ounce, while copper for March delivery rallied 1.25% to trade close to a four-month high at USD3.925 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,744.35 a troy ounce during early U.S. morning trade, edging 0.23% lower.
It earlier rose by as much as 0.37% to trade at a three-day high of USD1,754.65 a troy ounce.
Futures were likely to find support at USD1,712.65 a troy ounce, Tuesday’s low and short-term resistance at USD1,765.85, the high from February 3.
Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece's three political parties later in the day to discuss the terms of new austerity measures being demanded in return for a second bailout worth EUR130 billion.
Athens is also in talks with private-sector creditors over a planned EUR100 billion debt swap deal, which is also a precondition for the new aid package.
European Union officials have said a final agreement the bailout much be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
The uncertainty surrounding the Greek debt talks saw the euro retreat from an eight-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.1% to trade at 78.66, after being down by as much as 0.11% earlier.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Gold prices remained supported after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment unexpectedly fell to a three-year low.
In testimony to the Senate Budget Committee in Washington on Tuesday Bernanke said the decline in the jobless rate understated weakness in the labor market and that the economic outlook remains “uncertain”.
Elsewhere on the Comex, silver for March delivery eased up 0.02% to trade at USD34.20 a troy ounce, while copper for March delivery rallied 1.25% to trade close to a four-month high at USD3.925 a pound.