Investing.com – Gold futures slumped on Thursday, hitting a two-day low as a cautious sense of optimism that euro zone policymakers will make progress in resolving the region’s debt crisis dampened the safe haven appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,810.55 a troy ounce during late Asian trade, retreating 0.74%.
It earlier fell as much as 1.1% to trade at USD1,804.85 a troy ounce, the lowest price since September 13.
Fears over an imminent Greek debt default eased after German Chancellor Angela Merkel and French President Nicolas Sarkozy reaffirmed their support to the debt-laden country on Wednesday.
The leaders of the euro zone’s two largest economies said in a statement following a conference call with Greek Prime Minister George Papandreou that they were “convinced the future of Greece is in the euro zone.”
Despite, the pullback gold prices were expected to remain supported in the near-term after the Wall Street Journal said ratings agency Moody's was expected to review Italy's sovereign debt rating and may possibly downgrade it, adding to fears over the region’s third largest economy.
French lender Societe Generale recommended buying gold futures “on dips, as the ongoing debt/deficit crisis is likely to result in an extended period of super lax monetary conditions in the U.S. and Europe.”
In a report published Wednesday, the bank added that “Gold is likely to make fresh all-time record highs before year-end.”
Gold traders were also awaiting the release of a flurry of U.S. data to gauge the strength of the U.S. economic recovery and the need for further stimulus from the Federal Reserve.
Later in the day, the U.S. was to produce government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.
Elsewhere on the Comex, silver for December delivery shed 0.16% to trade at USD40.46 a troy ounce, while copper for December delivery added 0.18% to trade USD3.916 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,810.55 a troy ounce during late Asian trade, retreating 0.74%.
It earlier fell as much as 1.1% to trade at USD1,804.85 a troy ounce, the lowest price since September 13.
Fears over an imminent Greek debt default eased after German Chancellor Angela Merkel and French President Nicolas Sarkozy reaffirmed their support to the debt-laden country on Wednesday.
The leaders of the euro zone’s two largest economies said in a statement following a conference call with Greek Prime Minister George Papandreou that they were “convinced the future of Greece is in the euro zone.”
Despite, the pullback gold prices were expected to remain supported in the near-term after the Wall Street Journal said ratings agency Moody's was expected to review Italy's sovereign debt rating and may possibly downgrade it, adding to fears over the region’s third largest economy.
French lender Societe Generale recommended buying gold futures “on dips, as the ongoing debt/deficit crisis is likely to result in an extended period of super lax monetary conditions in the U.S. and Europe.”
In a report published Wednesday, the bank added that “Gold is likely to make fresh all-time record highs before year-end.”
Gold traders were also awaiting the release of a flurry of U.S. data to gauge the strength of the U.S. economic recovery and the need for further stimulus from the Federal Reserve.
Later in the day, the U.S. was to produce government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.
Elsewhere on the Comex, silver for December delivery shed 0.16% to trade at USD40.46 a troy ounce, while copper for December delivery added 0.18% to trade USD3.916 a pound.