Investing.com – Gold futures trimmed losses on Tuesday, bouncing off the daily low as investors awaited a key vote in Slovakia on increasing the size and abilities of the euro zone’s bailout fund.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,666.05 a troy ounce during U.S. morning trade, shedding 0.28%.
It earlier fell by as much as 1.1% to trade at a daily low of USD1,656.05 a troy ounce.
Investors awaited a closely-watched vote by Slovakia on expanding the powers of the euro zone's EUR440 billion bailout fund, the European Financial Stability Facility.
The country is the last of the 17-member bloc to vote on the EFSF, which needs to be approved by all euro zone states for it to go active.
The uncertainty surrounding the outcome of the vote helped limit losses in gold after the head of Slovakia's leading opposition party Robert Fico said earlier that his party will vote against the motion on Tuesday, but will likely support the revamped EFSF in a second vote later in the week.
Also Tuesday, officials from the European Union, International Monetary Fund and European Central Bank said in a statement that Greece will most likely receive its next tranche of bailout funds in early November, allowing the debt-laden country to avert a near-term default.
The U.S. dollar remained higher against most of its major counterparts, with the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gaining 0.22% to trade at 78.04.
Meanwhile, French lender Societe Generale said in a report earlier that while it remains “broadly bullish” on the outlook for gold, it lowered its 2012 price forecast for the metal.
The bank now expects gold prices to average USD2,175 an ounce next year, down from a previous forecast of USD2,275 per ounce.
Elsewhere on the Comex, silver for December delivery dipped 0.34% to trade at USD31.87 a troy ounce, while copper for December delivery plunged 2.87% to trade at USD3.272 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,666.05 a troy ounce during U.S. morning trade, shedding 0.28%.
It earlier fell by as much as 1.1% to trade at a daily low of USD1,656.05 a troy ounce.
Investors awaited a closely-watched vote by Slovakia on expanding the powers of the euro zone's EUR440 billion bailout fund, the European Financial Stability Facility.
The country is the last of the 17-member bloc to vote on the EFSF, which needs to be approved by all euro zone states for it to go active.
The uncertainty surrounding the outcome of the vote helped limit losses in gold after the head of Slovakia's leading opposition party Robert Fico said earlier that his party will vote against the motion on Tuesday, but will likely support the revamped EFSF in a second vote later in the week.
Also Tuesday, officials from the European Union, International Monetary Fund and European Central Bank said in a statement that Greece will most likely receive its next tranche of bailout funds in early November, allowing the debt-laden country to avert a near-term default.
The U.S. dollar remained higher against most of its major counterparts, with the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gaining 0.22% to trade at 78.04.
Meanwhile, French lender Societe Generale said in a report earlier that while it remains “broadly bullish” on the outlook for gold, it lowered its 2012 price forecast for the metal.
The bank now expects gold prices to average USD2,175 an ounce next year, down from a previous forecast of USD2,275 per ounce.
Elsewhere on the Comex, silver for December delivery dipped 0.34% to trade at USD31.87 a troy ounce, while copper for December delivery plunged 2.87% to trade at USD3.272 a pound.