Gold futures hit 3-week high amid Greece uncertainty

Investing.com - Gold futures traded at the highest level in almost three weeks on Tuesday, amid uncertainty over Greece’s future in the euro zone if left-wing anti-austerity party Syriza win elections due to be held later this month.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery tacked on $5.80, or 0.48%, to trade at $1,209.80 a troy ounce during European morning hours, after hitting a daily peak of $1,211.80, the most since December 18.

A day earlier, gold rallied $17.80, or 1.5%, to settle at $1,204.00 an ounce.

Futures were likely to find support at $1,177.80, the low from January 5, and resistance at $1,213.90, the high from December 18.

Also on the Comex, silver futures for March delivery rallied 10.0 cents, or 0.62%, to trade at $16.31 a troy ounce.

Meanwhile, investors sought shelter from steep losses in the oil market, amid lingering concerns over a growing supply glut.

London-traded Brent prices declined 82 cents, or 1.55%, to $52.29 a barrel, while Nymex oil futures dropped 71 cents, or 1.42%, to end at $49.33, the lowest level since April 2009.

In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market. Wednesday’s Federal Reserve meeting minutes will be also closely watched.

Gold lost nearly 2% in 2014 amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Elsewhere in metals trading, copper for March delivery dipped 0.2 cents, or 0.07%, to trade at $2.764 a pound.

The red metal slumped approximately 18% in 2014 as concerns over the global economic outlook and the impact on future copper demand prospects dampened the appeal of the commodity.