Investing.com – Gold futures added to gains on Monday, rallying to a fresh six-week high as uncertainty over political turmoil in Italy and Greece boosted safe haven demand for the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,782.85 a troy ounce during U.S. morning trade, rallying 1.52%.
It earlier rose by as much as 1.65% to trade at USD1,784.35 a troy ounce, the highest price since September 22.
Italian borrowing costs eased off earlier euro-era highs, on speculation that Prime Minister Silvio Berlusconi was about to step down amid mounting opposition from within his own party, ahead of a critical parliamentary vote on Tuesday.
The reports were subsequently denied by a spokesman for Mr. Berlusconi.
Meanwhile, Greek Prime Minister George Papandreou said German counterpart Angela Merkel expressed support for his decision to step down on Sunday, allowing the creation of a national unity government intended to secure international financing and avert a potential default.
However, uncertainty remained as Papandreou was to meet with opposition leader Antonis Samaras later in the day to decide the head of the new government.
Gold is often considered a haven during times of financial turmoil and a refuge from political uncertainty.
Gold prices found additional support after Eric Rosengren, President of the Federal Reserve Bank of Boston said earlier that the Fed “must remain aggressive to combat the weak labor market”.
The comments added to speculation the Fed could introduce fresh stimulus measures to boost the U.S. economy after Fed Chairman Ben Bernanke said last week that an additional round of asset purchases was a “viable option”.
The U.S. dollar moderated gains against its major counterparts, boosting the appeal of commodities. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11% to trade at 77.03, pulling back from the daily high of 77.59.
Elsewhere on the Comex, silver for December delivery rallied 1.85% to trade at USD34.71 a troy ounce, while copper for December delivery edged 0.16% lower to trade at USD3.559 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,782.85 a troy ounce during U.S. morning trade, rallying 1.52%.
It earlier rose by as much as 1.65% to trade at USD1,784.35 a troy ounce, the highest price since September 22.
Italian borrowing costs eased off earlier euro-era highs, on speculation that Prime Minister Silvio Berlusconi was about to step down amid mounting opposition from within his own party, ahead of a critical parliamentary vote on Tuesday.
The reports were subsequently denied by a spokesman for Mr. Berlusconi.
Meanwhile, Greek Prime Minister George Papandreou said German counterpart Angela Merkel expressed support for his decision to step down on Sunday, allowing the creation of a national unity government intended to secure international financing and avert a potential default.
However, uncertainty remained as Papandreou was to meet with opposition leader Antonis Samaras later in the day to decide the head of the new government.
Gold is often considered a haven during times of financial turmoil and a refuge from political uncertainty.
Gold prices found additional support after Eric Rosengren, President of the Federal Reserve Bank of Boston said earlier that the Fed “must remain aggressive to combat the weak labor market”.
The comments added to speculation the Fed could introduce fresh stimulus measures to boost the U.S. economy after Fed Chairman Ben Bernanke said last week that an additional round of asset purchases was a “viable option”.
The U.S. dollar moderated gains against its major counterparts, boosting the appeal of commodities. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11% to trade at 77.03, pulling back from the daily high of 77.59.
Elsewhere on the Comex, silver for December delivery rallied 1.85% to trade at USD34.71 a troy ounce, while copper for December delivery edged 0.16% lower to trade at USD3.559 a pound.