Investing.com - Gold futures extended losses during early U.S. morning trade on Tuesday, pressured by a broadly stronger U.S. dollar, as concerns over political uncertainty in Greece mounted after initial attempts to form a coalition government collapsed.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,616.75 a troy ounce during early U.S. trade, tumbling 1.4%.
It earlier fell by as much as 1.5% to trade at USD1,613.55 a troy ounce, the lowest since April 4, when prices fell to the lowest since January.
Gold futures were likely to find support at USD1,606.05 a troy ounce, the low from January 9 and resistance at USD1,672.15, the high from May 1.
Gold’s losses accelerated after prices broke below a key technical support level close to USD1,625 an ounce, triggering fresh sell orders amid bearish chart signals.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The task now falls on Alexis Tsipras, the head of Syriza, the country’s second-biggest party. But he indicated late Monday that a coalition could not be formed, as the differences between the various parties who won seats in the weekend elections are too wide.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
The Financial Times reported earlier that New Greek elections could come as early as June 17, if a coalition cannot be agreed in the next few days.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
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. The euro traded close to Monday’s three-month low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to trade at 80.00.
Elsewhere on the Comex, silver for July delivery tumbled 2.15% to trade at a four-month low of USD29.48 a troy ounce, while copper for July delivery plunged 2.3% to trade at USD3.687 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,616.75 a troy ounce during early U.S. trade, tumbling 1.4%.
It earlier fell by as much as 1.5% to trade at USD1,613.55 a troy ounce, the lowest since April 4, when prices fell to the lowest since January.
Gold futures were likely to find support at USD1,606.05 a troy ounce, the low from January 9 and resistance at USD1,672.15, the high from May 1.
Gold’s losses accelerated after prices broke below a key technical support level close to USD1,625 an ounce, triggering fresh sell orders amid bearish chart signals.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The task now falls on Alexis Tsipras, the head of Syriza, the country’s second-biggest party. But he indicated late Monday that a coalition could not be formed, as the differences between the various parties who won seats in the weekend elections are too wide.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
The Financial Times reported earlier that New Greek elections could come as early as June 17, if a coalition cannot be agreed in the next few days.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
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. The euro traded close to Monday’s three-month low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to trade at 80.00.
Elsewhere on the Comex, silver for July delivery tumbled 2.15% to trade at a four-month low of USD29.48 a troy ounce, while copper for July delivery plunged 2.3% to trade at USD3.687 a pound.