Investing.com – Gold futures pared gains on Tuesday, pulling back from a daily high in volatile trade as markets continued to focus on the euro zone’s sovereign debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,814.05 a troy ounce during U.S. morning trade, easing up 0.19%.
It earlier rose as much as 1.06% to trade at a daily high of USD1,836.15 a troy ounce.
Concerns over the euro zone’s debt crisis remained in focus as reports of an impending joint statement on Greece by German Chancellor Angela Merkel and French President Nicolas Sarkozy were denied by a French government spokesman.
The two leaders were "determined to do what is necessary" and were "going to take action today," a French government source said earlier.
Meanwhile, the Italian Treasury earlier in the day auctioned EUR3.9 billion of five-year bonds at an average yield of 5.6%, the highest since the inception of the single currency and up from 4.93% last month.
The auction came after earlier reports that Italy's Finance Ministry had held talks with Chinese officials about “significant” purchases of Italian bonds.
Worries that ratings agency Moody's will downgrade the credit ratings of France’s three largest banks due to their exposure to Greek government debt also provided support.
Wall Street investment bank Morgan Stanley reiterated its positive view on gold in a report published Monday, citing, “a formidable cocktail of macro challenges including financial systemic risk, concern of a double dip recession and sustained low interest rates.”
The lender expects gold prices to average USD1,819 a troy ounce for the remainder of the year and raised its 2012 price forecast to USD2,085 an ounce.
Elsewhere on the Comex, silver for December delivery gained 0.8% to trade at USD40.54 a troy ounce, while copper for December delivery dipped 0.11% to trade USD3.991 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,814.05 a troy ounce during U.S. morning trade, easing up 0.19%.
It earlier rose as much as 1.06% to trade at a daily high of USD1,836.15 a troy ounce.
Concerns over the euro zone’s debt crisis remained in focus as reports of an impending joint statement on Greece by German Chancellor Angela Merkel and French President Nicolas Sarkozy were denied by a French government spokesman.
The two leaders were "determined to do what is necessary" and were "going to take action today," a French government source said earlier.
Meanwhile, the Italian Treasury earlier in the day auctioned EUR3.9 billion of five-year bonds at an average yield of 5.6%, the highest since the inception of the single currency and up from 4.93% last month.
The auction came after earlier reports that Italy's Finance Ministry had held talks with Chinese officials about “significant” purchases of Italian bonds.
Worries that ratings agency Moody's will downgrade the credit ratings of France’s three largest banks due to their exposure to Greek government debt also provided support.
Wall Street investment bank Morgan Stanley reiterated its positive view on gold in a report published Monday, citing, “a formidable cocktail of macro challenges including financial systemic risk, concern of a double dip recession and sustained low interest rates.”
The lender expects gold prices to average USD1,819 a troy ounce for the remainder of the year and raised its 2012 price forecast to USD2,085 an ounce.
Elsewhere on the Comex, silver for December delivery gained 0.8% to trade at USD40.54 a troy ounce, while copper for December delivery dipped 0.11% to trade USD3.991 a pound.