Investing.com – Gold futures moved fractionally higher in Asian trade Tuesday, after German officials expressed reservations about an upcoming euro-zone meeting’s potential for bringing an end to the two-year old European debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,674.45 a troy ounce during early Asian trade, climbing 0.11%, after hitting a low of USDS1,669.15.
On Monday, German Chancellor Angela Merkel’s spokesman Steffen Seibert dashed market hopes for an imminent solution to Europe’s two-year old debt crisis, saying Merkel had made it clear that, “dreams are taking hold now with this package, everything will be solved and everything will be over on Monday won’t be fulfilled.”
The process for an end to the crisis, “surely extends well into next year,” Seibert said at a news briefing from Berlin.
Over the weekend, the Group of 20 finance ministers and central bankers wrapped up talks in Paris, proposing a scheme to ward off Greek default, strengthen regional financial institutions and halt the spread of debt contagion.
European officials set an October 23 deadline for action at their scheduled meeting in Brussels, Belgium.
Global financial provider UBS, commenting on European debt, said earlier, “Too much uncertainty remains in the market with questions over issues such as guarantees of European sovereign debt, a Greek default and debt sustainability.”
“While there is not rush to buy gold here, it is equally clear that investors who are long on the yellow metal are not willing to let go of holdings either,” UBS said.
A lower dollar helped support gold futures, as a weaker greenback makes gold futures purchases less expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down by 0.05% to 77.49.
On the Comex, silver for December delivery rose 0.14% to trade at USD31.86 a troy ounce, while copper for December delivery added 0.28% to trade at USD3.343 a pound.