Investing.com – Gold futures edged lower on Wednesday, amid signs of progress in resolving the U.S. debt ceiling debate and on hopes for a positive outcome to Thursday’s euro zone summit meeting, while a broadly weaker U.S. dollar limited losses.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,586.85 a troy ounce during U.S. morning trade, easing down 0.1%.
It earlier fell as much as 0.4% to trade at USD1,581.35 a troy ounce, the lowest since July 15.
U.S. President Barack Obama said Tuesday there had been “some progress” in talks with lawmakers on raising the USD14.3 trillion debt ceiling after endorsing a proposed USD3.7 trillion debt-reduction plan.
President Obama said the plan was “a very significant step,” boosting optimism that a deal would be reached before the August 2 deadline.
Meanwhile, French President Nicolas Sarkozy and German Chancellor Angela Merkel were to meet later in the day ahead of Thursday’s summit meeting of European Union leaders.
EU policymakers were to meet in Brussels to finalize the terms of a second bailout for Greece and discuss the financial stability of the entire single currency bloc.
Prices remained supported by a broadly weaker U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to trade at 75.23, after falling earlier to 75.03, the lowest since July 14.
Gold prices often move inversely to the greenback, as gold becomes less expensive for buyers using other currencies.
Despite the pullback, Barclays said that, “Uncertainties around sovereign debt in both Europe and the United States, as well as global economic growth in the second half of the year, are likely to remain supportive of gold.”
Elsewhere, on the Comex, silver for September delivery dropped 1.15% to trade at USD38.60 a troy ounce, while copper for September delivery declined 0.68% to trade at USD4.442 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,586.85 a troy ounce during U.S. morning trade, easing down 0.1%.
It earlier fell as much as 0.4% to trade at USD1,581.35 a troy ounce, the lowest since July 15.
U.S. President Barack Obama said Tuesday there had been “some progress” in talks with lawmakers on raising the USD14.3 trillion debt ceiling after endorsing a proposed USD3.7 trillion debt-reduction plan.
President Obama said the plan was “a very significant step,” boosting optimism that a deal would be reached before the August 2 deadline.
Meanwhile, French President Nicolas Sarkozy and German Chancellor Angela Merkel were to meet later in the day ahead of Thursday’s summit meeting of European Union leaders.
EU policymakers were to meet in Brussels to finalize the terms of a second bailout for Greece and discuss the financial stability of the entire single currency bloc.
Prices remained supported by a broadly weaker U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to trade at 75.23, after falling earlier to 75.03, the lowest since July 14.
Gold prices often move inversely to the greenback, as gold becomes less expensive for buyers using other currencies.
Despite the pullback, Barclays said that, “Uncertainties around sovereign debt in both Europe and the United States, as well as global economic growth in the second half of the year, are likely to remain supportive of gold.”
Elsewhere, on the Comex, silver for September delivery dropped 1.15% to trade at USD38.60 a troy ounce, while copper for September delivery declined 0.68% to trade at USD4.442 a pound.