Investing.com – Gold futures edged lower on Tuesday, but remained well supported close to the record high as investors awaited developments in regards to the impasse in U.S. debt talks, while a broadly weaker U.S. dollar supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,610.85 a troy ounce during late Asian trade, shedding 0.3%.
It earlier fell as much as 0.4% to trade at a daily low of USD1,609.35 a troy ounce. Gold prices rallied to a record high of USD1,625.05 a troy ounce in the previous session.
Prices remained supported as the U.S. dollar came under broad selling pressure. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.75% to trade at 73.75, the lowest since May 5.
Late Monday, in an address from the White House, President Barack Obama said that the current debt standoff was a “dangerous game” but added that he was confident a compromise would be reached in Congress before the August 2 deadline.
Meanwhile, House Speaker John Boehner urged passage of a proposal from his Republican Party and warned of the consequences of a default.
Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans have vowed that any compromise must not include higher taxes.
Any budget plan to raise the debt limit before the looming deadline must pass both the Republican-controlled House and the Democratic-run Senate and be signed by President Obama.
Global financial service provider Commerzbank said on Monday that the unresolved U.S. debt ceiling talks would likely weigh on the dollar in the short-term, and in turn present upward potential for gold.
“Raising the debt ceiling in such last-minute fashion relays an unwelcome message to investors. The main casualty of such a decision will be the U.S. dollar,” the lender said in a report.
Elsewhere on the Comex, silver for September delivery edged 0.2% lower to trade at USD40.26 a troy ounce, while copper for September delivery rose 0.95% to trade at USD4.449 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,610.85 a troy ounce during late Asian trade, shedding 0.3%.
It earlier fell as much as 0.4% to trade at a daily low of USD1,609.35 a troy ounce. Gold prices rallied to a record high of USD1,625.05 a troy ounce in the previous session.
Prices remained supported as the U.S. dollar came under broad selling pressure. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.75% to trade at 73.75, the lowest since May 5.
Late Monday, in an address from the White House, President Barack Obama said that the current debt standoff was a “dangerous game” but added that he was confident a compromise would be reached in Congress before the August 2 deadline.
Meanwhile, House Speaker John Boehner urged passage of a proposal from his Republican Party and warned of the consequences of a default.
Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans have vowed that any compromise must not include higher taxes.
Any budget plan to raise the debt limit before the looming deadline must pass both the Republican-controlled House and the Democratic-run Senate and be signed by President Obama.
Global financial service provider Commerzbank said on Monday that the unresolved U.S. debt ceiling talks would likely weigh on the dollar in the short-term, and in turn present upward potential for gold.
“Raising the debt ceiling in such last-minute fashion relays an unwelcome message to investors. The main casualty of such a decision will be the U.S. dollar,” the lender said in a report.
Elsewhere on the Comex, silver for September delivery edged 0.2% lower to trade at USD40.26 a troy ounce, while copper for September delivery rose 0.95% to trade at USD4.449 a pound.