Investing.com - Gold futures edged lower on Tuesday, but remained close to the previous session’s six-week high as investors continued to focus on developments surrounding Greece’s debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,673.85 a troy ounce during early European morning trade, shedding 0.27%.
It earlier fell by as much as 0.36% to trade at a session low USD1,671.15 a troy ounce. Gold prices rose to USD1,681.65 on Monday, the highest since December 12.
Futures were likely to find support at USD1,663.25 a troy ounce, the previous day’s low and short-term resistance at USD1,681.65.
At a meeting in Brussels on Monday, European finance ministers shunned a proposal by Greece’s creditors aimed at restructuring Greece’s debt, fuelling concerns over a possible default.
The ministers rejected bondholders' demands for an interest rate of 4% on new, longer-dated bonds that are expected to be issued in exchange for their existing Greek holdings.
Greece stated that it was not prepared to pay an interest rate of more than 3.5%, and euro zone finance ministers as well as the International Monetary Fund backed the Greek government's position.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Greece needs to secure an agreement on restructuring its debt in order to secure new bailout funds and avert a default when a EUR14.4 billion bond redemption comes due on March 20.
Meanwhile, the Wall Street Journal reported earlier that Portugal may need a second bailout amid concerns the country may not be able to get financing on the open market next year.
According to the article, there are concerns that the IMF could make fresh demands on Portugal if it becomes clear it can't return to the market, which it must do next year to help repay EUR9 billion in debt maturing in September 2013.
Trade was subdued during the Asian session as physical markets in China, Hong Kong, South Korea, Taiwan and Singapore were closed for the Chinese Lunar New Year holidays.
Elsewhere on the Comex, silver for March delivery added 0.1% to trade at USD32.31 a troy ounce, while copper for March delivery rose 0.1% to trade at USD3.802 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,673.85 a troy ounce during early European morning trade, shedding 0.27%.
It earlier fell by as much as 0.36% to trade at a session low USD1,671.15 a troy ounce. Gold prices rose to USD1,681.65 on Monday, the highest since December 12.
Futures were likely to find support at USD1,663.25 a troy ounce, the previous day’s low and short-term resistance at USD1,681.65.
At a meeting in Brussels on Monday, European finance ministers shunned a proposal by Greece’s creditors aimed at restructuring Greece’s debt, fuelling concerns over a possible default.
The ministers rejected bondholders' demands for an interest rate of 4% on new, longer-dated bonds that are expected to be issued in exchange for their existing Greek holdings.
Greece stated that it was not prepared to pay an interest rate of more than 3.5%, and euro zone finance ministers as well as the International Monetary Fund backed the Greek government's position.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Greece needs to secure an agreement on restructuring its debt in order to secure new bailout funds and avert a default when a EUR14.4 billion bond redemption comes due on March 20.
Meanwhile, the Wall Street Journal reported earlier that Portugal may need a second bailout amid concerns the country may not be able to get financing on the open market next year.
According to the article, there are concerns that the IMF could make fresh demands on Portugal if it becomes clear it can't return to the market, which it must do next year to help repay EUR9 billion in debt maturing in September 2013.
Trade was subdued during the Asian session as physical markets in China, Hong Kong, South Korea, Taiwan and Singapore were closed for the Chinese Lunar New Year holidays.
Elsewhere on the Comex, silver for March delivery added 0.1% to trade at USD32.31 a troy ounce, while copper for March delivery rose 0.1% to trade at USD3.802 a pound.