Investing.com – Gold futures eased off a four-week high on Tuesday amid speculation the European Union will prove additional aid to Greece, but losses were limited as a broadly weaker U.S. dollar boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,538.35 a troy ounce during late Asian trade, edging 0.08% lower.
The gold contract traded between a range of USD1,535.55, the daily low and USD1,541.75, the highest price since May 4. Gold prices were less than 2.5% away from an all-time high of USD1,577.15 an ounce it hit on May 2.
Concerns over Greece’s debt crisis eased after the Wall Street Journal reported that Germany may drop its call for Greece to restructure its debt in order to facilitate a new package of aid loans for the debt-laden country.
The chairman of euro zone finance ministers Jean-Claude Juncker said on Monday that he was optimistic after discussing further aid for Athens with French President Nicolas Sarkozy in Paris.
The news lifted the euro to a three-week high against the U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48% to hit 74.67, after earlier dropping to a four-week low of 74.51.
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, Europe’s largest financial service provider BNP Paribas forecast gold prices would trend “moderately higher” for the rest of the year, averaging USD1,500 an ounce, before peaking at USD1,600 an ounce in 2012.
The lender said in a report that, “The pace of monetary tightening by central banks and the evolution of inflation expectations will be key factors that will drive prices higher over the coming months.”
Elsewhere, silver for July delivery climbed 0.98% to trade at USD38.46 a troy ounce during late Asian trade, while copper for July delivery added 0.56% to trade at USD4.188 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,538.35 a troy ounce during late Asian trade, edging 0.08% lower.
The gold contract traded between a range of USD1,535.55, the daily low and USD1,541.75, the highest price since May 4. Gold prices were less than 2.5% away from an all-time high of USD1,577.15 an ounce it hit on May 2.
Concerns over Greece’s debt crisis eased after the Wall Street Journal reported that Germany may drop its call for Greece to restructure its debt in order to facilitate a new package of aid loans for the debt-laden country.
The chairman of euro zone finance ministers Jean-Claude Juncker said on Monday that he was optimistic after discussing further aid for Athens with French President Nicolas Sarkozy in Paris.
The news lifted the euro to a three-week high against the U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48% to hit 74.67, after earlier dropping to a four-week low of 74.51.
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, Europe’s largest financial service provider BNP Paribas forecast gold prices would trend “moderately higher” for the rest of the year, averaging USD1,500 an ounce, before peaking at USD1,600 an ounce in 2012.
The lender said in a report that, “The pace of monetary tightening by central banks and the evolution of inflation expectations will be key factors that will drive prices higher over the coming months.”
Elsewhere, silver for July delivery climbed 0.98% to trade at USD38.46 a troy ounce during late Asian trade, while copper for July delivery added 0.56% to trade at USD4.188 a pound.