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Gold higher on Greek worries

Published 02/02/2012, 02:13 PM
Updated 02/02/2012, 02:16 PM
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Investing.com - Gold futures climbed for the third day on Thursday, as Greek default worries triggered safe haven buying in the precious metal.
 
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1758.75 a troy ounce during late U.S. trade climbing 0.53%.
 
It earlier hit a high of USD1763.75 a troy ounce, surpassing the December 8 highs.
 
Gold futures were likely to find support at USD1735.45 a troy ounce, Wednesday’s low and technical resistance exists at USD1763.75 a troy ounce, today’s high.
 
Gold gained ground as mixed messages from Greece increased default fears.
 
Eurogroup head, Jean Claude Juncker stated talks with private creditors on the Greek debt restructuring plan have proven to be “ultra difficult”.
 
However, the European Union’s Economic and Monetary Affairs Commissioner Olli Rehn stated that Greek debt negotiations were at an advanced staged with a conclusion pending.
 
The deal is supposed to be approved at an extraordinary meeting of EU finance ministers on Monday.
 
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
 
In the U.S., Gold traders awaited news from Fed Chief Ben Bernanke’s testimony before the House Budget Committee for hints on additonal monetary stimulus.
 
Meanwhile, Bank of America has forecasted gold prices to hit USD2000 a troy ounce by the end of 2012, based on fundamental price factors.
 
Elsewhere on the Comex, silver for March settlement advanced 1.30% to trade at USD34.25 a troy ounce, while March copper futures gave back 1.48% to trade at USD3.78 a pound.



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