Investing.com - Gold futures were up for a second day on Tuesday, climbing to an eight-day high after European officials approved a long-awaited EUR130 billion bailout package for Greece.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,741.15 a troy ounce during early European morning trade, climbing 0.88%.
It earlier rose by as much as 1.05% to trade at USD1,744.75 a troy ounce, the highest since February 9.
Futures were likely to find short-term support at USD1,727.85 a troy ounce, the low from February 17 and resistance at USD1,754.95, the high from February 9.
At a meeting that lasted into the early of hours of Tuesday, euro zone finance ministers agreed on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
The decision will help Athens resolve its immediate payment needs and avert a sovereign debt default.
However, investors remained cautious amid uncertainty over Greece’s ability to meet the terms of the deal, while other felt the deal was only a short-term fix that falls short of what Greece needs to prevent financial collapse.
In a statement following the meeting, the Eurogroup said they had the “expectation that the International Monetary Fund will make a significant contribution” to the new Greek aid program.
But the board of the International Monetary Fund will only decide on the size of its contribution to the enhanced bailout deal for Greece "in the second week of March," according to Managing Director Christine Lagarde.
Meanwhile, the Financial Times reported earlier that the debt-laden country may need a third bailout when this second bailout runs out.
The report cited a confidential report prepared by analysts of the Troika, the International Monetary Fund, the European Central Bank and the European Commission, which cites the need for “prolonged financial support” over fears that the austerity program risks a prolonged recession.
Gold prices have moved in a range between USD1,700 and USD1,760 since the beginning of February, closely tracking sentiment towards Greece’s bailout talks.
Elsewhere on the Comex, silver for March delivery rallied 1.6% to trade at USD33.75 a troy ounce, while copper for March delivery surged 1.8% to trade at USD3.775 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,741.15 a troy ounce during early European morning trade, climbing 0.88%.
It earlier rose by as much as 1.05% to trade at USD1,744.75 a troy ounce, the highest since February 9.
Futures were likely to find short-term support at USD1,727.85 a troy ounce, the low from February 17 and resistance at USD1,754.95, the high from February 9.
At a meeting that lasted into the early of hours of Tuesday, euro zone finance ministers agreed on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
The decision will help Athens resolve its immediate payment needs and avert a sovereign debt default.
However, investors remained cautious amid uncertainty over Greece’s ability to meet the terms of the deal, while other felt the deal was only a short-term fix that falls short of what Greece needs to prevent financial collapse.
In a statement following the meeting, the Eurogroup said they had the “expectation that the International Monetary Fund will make a significant contribution” to the new Greek aid program.
But the board of the International Monetary Fund will only decide on the size of its contribution to the enhanced bailout deal for Greece "in the second week of March," according to Managing Director Christine Lagarde.
Meanwhile, the Financial Times reported earlier that the debt-laden country may need a third bailout when this second bailout runs out.
The report cited a confidential report prepared by analysts of the Troika, the International Monetary Fund, the European Central Bank and the European Commission, which cites the need for “prolonged financial support” over fears that the austerity program risks a prolonged recession.
Gold prices have moved in a range between USD1,700 and USD1,760 since the beginning of February, closely tracking sentiment towards Greece’s bailout talks.
Elsewhere on the Comex, silver for March delivery rallied 1.6% to trade at USD33.75 a troy ounce, while copper for March delivery surged 1.8% to trade at USD3.775 a pound.