Investing.com - Gold futures traded higher Friday as speculation that a proposed joint – bond issue will solve Greece’s debt problems without the need for the struggling island nation to leave the euro zone.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,562.15 a troy ounce during U.S. trade, adding 0.30%.
Gold futures were likely to find support at USD1,526.95 a troy ounce, the low from May 16 and near-term resistance at USD1,598.95, the high from May 21.
Lending support to the precious metal, Italian Prime Minister Mario Monti stated, during a television interview, “Europe can have euro bonds soon. Germany has an interest in ensuring no country leaves the euro, while Greece will probably remain in the 17 – nation currency region even as anything can happen.”
The EU summit ended yesterday with a plea to Greek voters to elect a pro - austerity governement on June 17 in order to keep the troubled island nation in the euro zone.
However, German Chancellor Angela Merkel left open a potential compromise on debt sharing via joint bonds in the euro area lifting hopes of cooperation.
Euro area finance ministers do not plan on meeting again until after the Greek elections next month, which potentially will determine Greek’s future in the euro zone. The Greek June election was called after a May 6 vote left no party able to form a government, as voter sent the anti-bailout Syriza party to second place.
A weaker U.S. dollar also benefited commodity prices with the U.S. dollar index lower by 0.24% to 82.24
Elsewhere on the Comex, silver for July delivery added 0.27% to trade at USD28.23 a troy ounce, while copper for July delivery advanced 0.78% to trade at USD3.45 a pound.