Investing.com – Gold futures trimmed losses on Tuesday, pulling back from a two-day low as the euro pared losses against the U.S. dollar, while lingering fears over the euro zone’s debt woes supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,551.55 a troy ounce during U.S. morning trade, easing down 0.15%.
It earlier fell as much as 0.85% to trade at USD1,541.15 a troy ounce, the lowest price since July 8.
The U.S. dollar eased off a four-month high against the euro after Italy successfully sold EUR6.75 billion of 12-month Treasury bills and amid speculation that the European Central Bank stepped in to buy peripheral euro zone debt.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 76.52, pulling back from a three-month high of 77.17.
Meanwhile, Dutch Finance Minister Jan Kees de Jager said earlier that the possibility of a selective default on Greek debt could no longer be ruled out, despite the ECB’s opposition to such a move.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Global financial service provider UBS said earlier that it expected gold prices to trade above USD1,600 in the third quarter of 2011.
“Gold should outperform due to its safe haven role, a lingering soft patch, a persistent sovereign risk premium, and the continuation of negative real rates in gold’s important markets,” the lender said in a report.
Elsewhere, silver for September delivery slumped 1.35% to trade at USD35.33 a troy ounce, while copper for September delivery eased up 0.18% to trade at USD4.372 a pound.
UBS lowered its 2011 silver price forecast to USD36 an ounce from a previous estimate of USD40.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,551.55 a troy ounce during U.S. morning trade, easing down 0.15%.
It earlier fell as much as 0.85% to trade at USD1,541.15 a troy ounce, the lowest price since July 8.
The U.S. dollar eased off a four-month high against the euro after Italy successfully sold EUR6.75 billion of 12-month Treasury bills and amid speculation that the European Central Bank stepped in to buy peripheral euro zone debt.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 76.52, pulling back from a three-month high of 77.17.
Meanwhile, Dutch Finance Minister Jan Kees de Jager said earlier that the possibility of a selective default on Greek debt could no longer be ruled out, despite the ECB’s opposition to such a move.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Global financial service provider UBS said earlier that it expected gold prices to trade above USD1,600 in the third quarter of 2011.
“Gold should outperform due to its safe haven role, a lingering soft patch, a persistent sovereign risk premium, and the continuation of negative real rates in gold’s important markets,” the lender said in a report.
Elsewhere, silver for September delivery slumped 1.35% to trade at USD35.33 a troy ounce, while copper for September delivery eased up 0.18% to trade at USD4.372 a pound.
UBS lowered its 2011 silver price forecast to USD36 an ounce from a previous estimate of USD40.