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Gold futures climb to 3-day high ahead of Greece vote

Published 06/29/2011, 03:21 AM
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Investing.com – Gold futures were up for a second day on Wednesday, climbing to a three-day high as markets remained focused on a crucial parliamentary vote on austerity measures in Greece later in the day.   

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,507.65 a troy ounce during late Asian trade, gaining 0.4%.              

It earlier rose as much as 0.45% to trade at USD1,508.55 a troy ounce, the highest price since June 24.

Later in the day, Greece's Parliament was to vote on a EUR28.4 billion, five-year austerity package needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.

Violent erupted in Athens on Tuesday in the first half of a 48-hour general strike, as riot police fired tear-gas to fend off thousands of anti-government protestors. 

Gold is often considered a haven against political turmoil and global financial instability.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2% to trade at 75.30, hovering close to a six-day low.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Elsewhere, silver for September delivery climbed 1.1% to trade at USD34.32 a troy ounce during, while copper for September delivery rose 0.55% to trade at USD4.136 a pound.

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