Investing.com - Gold futures came off the lowest levels of the day during European morning trade on Monday, but held on to mild losses after pro-bailout parties won a majority in the Greek election over the weekend, easing fears the debt-laden country will exit the euro zone.
Some profit taking also weighed, as investors cashed out of the market to lock in gains from last week’s 6-day rally that took prices to the highest in almost two weeks.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,619.75 a troy ounce during early European trade, shedding 0.5%.
It earlier fell by as much as 1.25% to trade at a session low of USD1,609.25 a troy ounce. Prices touched a seven-day high of USD1,634.35 a troy ounce on Friday.
Gold futures were likely to find support at USD1,559.35 a troy ounce, the low from June 8 and near-term resistance at USD1,642.15, the high from June 6.
Conservative New Democracy leader Antonis Samaras will begin forging a coalition government later Monday after early results projected the pro-bailout party as the winner in Sunday’s crucial parliamentary elections, edging out the anti-austerity Syriza party.
Initial results from the Interior Ministry indicated that the pro-euro New Democracy party had gained 29.7% of the vote, with Syriza coming a close second with 27%.
The party would now have three days to form a governing coalition after gaining 129 seats out of the 151 seats it needs to lead the 300-seat government, according to the initial results.
Market sentiment had been roiled in recent weeks amid growing fears over an imminent Greek exit from the single currency bloc.
However, investors remained cautious as Greece's immediate fate remains uncertain. This week will see the second attempt in as many months for the Greek parties to form a coalition, after voters failed to conclusively back a new government in a parliamentary election on May 6.
In addition, investors have been increasingly anxious over rising borrowing costs for Spain and Italy, amid fears they will be the next euro zone countries to require international bailouts.
The yield on Spanish 10-year bonds climbed to a euro-era high last week. The spike in borrowing costs came in spite of efforts to insulate Madrid from the effects of the ongoing sovereign debt crisis by agreeing on a EUR100 billion aid package for Spanish banks.
Spain became the fourth euro zone nation to seek a rescue last week. Some investors fear it is only a matter of time before Italy becomes the next country to ask for help.
Later in the day, a Group of 20 summit was due to begin in Mexico, amid hopes it could produce fresh measures to combat the crisis in Europe.
Gold traders were also eying the outcome of the Federal Reserves two-day policy meeting later this week, for clues as to the likelihood of a fresh round of monetary easing, which could potentially hurt the dollar and support gold.
Elsewhere on the Comex, silver for July delivery fell 0.95% to trade at USD28.46 a troy ounce, while copper for July delivery jumped 0.85% to trade at USD3.411 a pound.
Some profit taking also weighed, as investors cashed out of the market to lock in gains from last week’s 6-day rally that took prices to the highest in almost two weeks.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,619.75 a troy ounce during early European trade, shedding 0.5%.
It earlier fell by as much as 1.25% to trade at a session low of USD1,609.25 a troy ounce. Prices touched a seven-day high of USD1,634.35 a troy ounce on Friday.
Gold futures were likely to find support at USD1,559.35 a troy ounce, the low from June 8 and near-term resistance at USD1,642.15, the high from June 6.
Conservative New Democracy leader Antonis Samaras will begin forging a coalition government later Monday after early results projected the pro-bailout party as the winner in Sunday’s crucial parliamentary elections, edging out the anti-austerity Syriza party.
Initial results from the Interior Ministry indicated that the pro-euro New Democracy party had gained 29.7% of the vote, with Syriza coming a close second with 27%.
The party would now have three days to form a governing coalition after gaining 129 seats out of the 151 seats it needs to lead the 300-seat government, according to the initial results.
Market sentiment had been roiled in recent weeks amid growing fears over an imminent Greek exit from the single currency bloc.
However, investors remained cautious as Greece's immediate fate remains uncertain. This week will see the second attempt in as many months for the Greek parties to form a coalition, after voters failed to conclusively back a new government in a parliamentary election on May 6.
In addition, investors have been increasingly anxious over rising borrowing costs for Spain and Italy, amid fears they will be the next euro zone countries to require international bailouts.
The yield on Spanish 10-year bonds climbed to a euro-era high last week. The spike in borrowing costs came in spite of efforts to insulate Madrid from the effects of the ongoing sovereign debt crisis by agreeing on a EUR100 billion aid package for Spanish banks.
Spain became the fourth euro zone nation to seek a rescue last week. Some investors fear it is only a matter of time before Italy becomes the next country to ask for help.
Later in the day, a Group of 20 summit was due to begin in Mexico, amid hopes it could produce fresh measures to combat the crisis in Europe.
Gold traders were also eying the outcome of the Federal Reserves two-day policy meeting later this week, for clues as to the likelihood of a fresh round of monetary easing, which could potentially hurt the dollar and support gold.
Elsewhere on the Comex, silver for July delivery fell 0.95% to trade at USD28.46 a troy ounce, while copper for July delivery jumped 0.85% to trade at USD3.411 a pound.