Investing.com – Gold futures extended gains on Monday, climbing above the psychologically important level of USD1,500 an ounce, as weakness in the U.S. dollar and uncertainty over possible euro zone sovereign debt restructuring enhanced the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,503.45 a troy ounce during U.S. morning trade, gaining 0.58%.
It earlier rose as much as 0.61% to a daily high of USD1,503.95 a troy ounce.
European finance ministers were meeting in Brussels on Monday and Tuesday to discuss details of Portugal’s bailout and how to address Greece’s renewed debt problems, although an immediate solution on Greece was not expected.
Meanwhile, a senior U.S. Treasury official said earlier Monday that the U.S Treasury was expected to reach the USD14.3 trillion debt ceiling by the end of the day.
On Sunday, President Barack Obama warned that a failure to raise the U.S. debt ceiling could disrupt the global financial system.
In a televised interview on the “Face the Nation” program aired on CBS, President Obama warned that “the entire financial system could unravel” and that the U.S. “could have a worse recession than we’ve already had”, if Republican and Democratic lawmakers failed to raise the debt ceiling in time.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.53% to hit 75.52, pulling back from a six-week high of 76.19.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Elsewhere, silver for July delivery shed 0.66% to trade at USD35.14 a troy ounce during U.S. morning trade, after tumbling by as much as 3.6% to a daily low of USD34.01.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,503.45 a troy ounce during U.S. morning trade, gaining 0.58%.
It earlier rose as much as 0.61% to a daily high of USD1,503.95 a troy ounce.
European finance ministers were meeting in Brussels on Monday and Tuesday to discuss details of Portugal’s bailout and how to address Greece’s renewed debt problems, although an immediate solution on Greece was not expected.
Meanwhile, a senior U.S. Treasury official said earlier Monday that the U.S Treasury was expected to reach the USD14.3 trillion debt ceiling by the end of the day.
On Sunday, President Barack Obama warned that a failure to raise the U.S. debt ceiling could disrupt the global financial system.
In a televised interview on the “Face the Nation” program aired on CBS, President Obama warned that “the entire financial system could unravel” and that the U.S. “could have a worse recession than we’ve already had”, if Republican and Democratic lawmakers failed to raise the debt ceiling in time.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.53% to hit 75.52, pulling back from a six-week high of 76.19.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Elsewhere, silver for July delivery shed 0.66% to trade at USD35.14 a troy ounce during U.S. morning trade, after tumbling by as much as 3.6% to a daily low of USD34.01.