Investing.com - Gold futures regained strength on Monday, as the safe haven appeal of the precious metal re-emerged following Standard and Poor’s decision to downgrade the sovereign credit ratings of nine euro zone countries, including triple-A rated France and Austria.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,644.45 a troy ounce during early European morning trade, climbing 0.83%.
It earlier rose by as much as 0.9% to trade at a session high USD1,645.45 a troy ounce.
Gold futures were likely to find support at USD1,625.85 a troy ounce, the previous session’s low and resistance at USD1,662.85, the high of January 12.
Gold, which has been trading more like a risk asset since late last year, seems to have broken that relationship, moving more like a safe haven asset in recent sessions.
Prices have gained nearly 5% since the start of 2012, boosted by the return of safe haven bids as the euro zone debt crisis entered its third year with no swift solution in sight.
After markets closed Friday, S&P stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches.
Malta, Slovakia and Slovenia were downgraded by one notch, while Germany, Finland, Luxembourg, and the Netherlands kept their triple-A ratings.
Adding to nervousness over the euro zone’s debt crisis, talks aimed at negotiating a restructuring of Greece's debts broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds. Negotiations are expected to resume on Wednesday.
Without the swap, debt-stricken Greece is unlikely to secure a second financial bailout, raising fears over a possible disorderly Greek default in March, when massive bond payments are due.
Meanwhile, gold prices continued to draw support from strong physical demand in top consumers China and India.
Elsewhere on the Comex, silver for March delivery rose 1.03% to trade at USD29.82 a troy ounce, while copper for March delivery advanced 0.8% to trade at USD3.666 a pound.
Comex floor trading will be closed on Monday for the Martin Luther King Jr. holiday.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,644.45 a troy ounce during early European morning trade, climbing 0.83%.
It earlier rose by as much as 0.9% to trade at a session high USD1,645.45 a troy ounce.
Gold futures were likely to find support at USD1,625.85 a troy ounce, the previous session’s low and resistance at USD1,662.85, the high of January 12.
Gold, which has been trading more like a risk asset since late last year, seems to have broken that relationship, moving more like a safe haven asset in recent sessions.
Prices have gained nearly 5% since the start of 2012, boosted by the return of safe haven bids as the euro zone debt crisis entered its third year with no swift solution in sight.
After markets closed Friday, S&P stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches.
Malta, Slovakia and Slovenia were downgraded by one notch, while Germany, Finland, Luxembourg, and the Netherlands kept their triple-A ratings.
Adding to nervousness over the euro zone’s debt crisis, talks aimed at negotiating a restructuring of Greece's debts broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds. Negotiations are expected to resume on Wednesday.
Without the swap, debt-stricken Greece is unlikely to secure a second financial bailout, raising fears over a possible disorderly Greek default in March, when massive bond payments are due.
Meanwhile, gold prices continued to draw support from strong physical demand in top consumers China and India.
Elsewhere on the Comex, silver for March delivery rose 1.03% to trade at USD29.82 a troy ounce, while copper for March delivery advanced 0.8% to trade at USD3.666 a pound.
Comex floor trading will be closed on Monday for the Martin Luther King Jr. holiday.