Investing.com – Gold futures were up for the first time in three days on Monday, as a weaker U.S. dollar and comments from ratings agency Standard & Poor’s regarding Greece’s sovereign debt supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,494.15 a troy ounce during late Asian trade, climbing 0.42%.
It earlier rose as much as 0.53% to hit a daily high of USD1,495.15 a troy ounce.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to trade at 74.48, after falling earlier to 74.41, the lowest level since June 9.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, Standard & Poor’s said earlier Monday that a proposed debt rollover plan for Greece may place the country in “selective default” under the ratings firm's criteria.
French lenders had recently proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
Over the weekend, euro zone finance ministers authorized a EUR12 billion tranche of bailout funds for Greece and said details of a second aid package for Athens would be finalized by mid-September.
Gold is often considered a refuge during times of economic uncertainty.
Despite the recent pullback in gold prices, global financial service provider BNP Paribas on Friday said that it expected prices to average USD1,510 an ounce in 2011 and USD1,600 an ounce in 2012, as rising inflationary pressures were expected to support prices.
Elsewhere, silver for September delivery rose 0.4% to trade at USD34.03 a troy ounce during, while copper for September delivery edged 0.2% higher to trade at USD4.322 a pound.
NYMEX floor trading is closed Monday for the U.S. Independence Day holiday.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,494.15 a troy ounce during late Asian trade, climbing 0.42%.
It earlier rose as much as 0.53% to hit a daily high of USD1,495.15 a troy ounce.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to trade at 74.48, after falling earlier to 74.41, the lowest level since June 9.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, Standard & Poor’s said earlier Monday that a proposed debt rollover plan for Greece may place the country in “selective default” under the ratings firm's criteria.
French lenders had recently proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
Over the weekend, euro zone finance ministers authorized a EUR12 billion tranche of bailout funds for Greece and said details of a second aid package for Athens would be finalized by mid-September.
Gold is often considered a refuge during times of economic uncertainty.
Despite the recent pullback in gold prices, global financial service provider BNP Paribas on Friday said that it expected prices to average USD1,510 an ounce in 2011 and USD1,600 an ounce in 2012, as rising inflationary pressures were expected to support prices.
Elsewhere, silver for September delivery rose 0.4% to trade at USD34.03 a troy ounce during, while copper for September delivery edged 0.2% higher to trade at USD4.322 a pound.
NYMEX floor trading is closed Monday for the U.S. Independence Day holiday.