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Gold rises as bargain hunting extends on Greek hopes

Published 05/28/2012, 08:39 PM
Updated 05/28/2012, 08:40 PM
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Investing.com - Gold prices rose in Asian trading on Tuesday, extending recent gains on sentiments prior selloffs sent the yellow metal too low, while hopes Greece will stick with the euro bolstered the asset as well.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.19% at USD1,574.15 a troy ounce.

Gold hit at a low of USD1,573.05 a troy ounce and a high of USD1,580.85 a troy ounce during the session.

Gold futures were likely to test support at USD1,551.15 a troy ounce, the low from May 24, and resistance at USD1,594.35, the high from May 22.

Fears that Greece may exit the eurozone have sent gold prices plunging in recent weeks, although the metal rebounded last Friday after bottom fishers began snapping up nicely priced positions, and that trend continued through Tuesday.

European debt crisis fears have sent investors ditching the euro in exchange for the dollar, gold's traditional hedge, and a rising dollar often translates into falling gold prices.

Polls have shown the conservative New Democracy political party is gaining ground ahead of June 17 elections, and may garner enough votes to patch together a coalition government in favor of sticking with the euro.

Yields have been spiking in Spanish government auctions on concerns Spain will feel financial strain as it sets to prop up the Bankia financial institution, yet investors stuck with gold over greenbacks earlier Tuesday.

Elsewhere on the Comex, silver for July delivery was down 0.35% and trading at USD28.288 a troy ounce, while copper for July delivery was down 0.11% and trading at USD3.464 a pound.






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