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Gold eases off highs but stays stable on Portugal bank concerns

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Investing.com -

Investing.com - Gold futures came off earlier highs and dipped into negative territory on Friday though the commodity remain stable on fears that financial woes at Portugal's largest bank may signify the euro zone periphery may be facing financial troubles anew.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,337.00 a troy ounce during U.S. trading, down 0.16%, up from a session low of $1,334.90 and off a high of $1,340.30.

The August contract settled up 1.13% at $1,339.20 on Thursday.

Futures were likely to find support at $1,312.10 a troy ounce, Monday's low, and resistance at $1,346.80, Thursday's high.

Gold prices shot up on safe-haven demand after the parent company of Portugal's largest bank, Banco Espírito Santo, said earlier this week that it missed commercial paper payments.

The announcement rattled nerves across the globe, fueling concerns surrounding the soundness of the banking sectors in Portugal as well as in Spain and Italy.

By Friday, investors crept out of safe-harbor gold positions and returned to both European and U.S. equities after Banco Espírito Santo sought to reassure markets that it had the funds to cover its parent company.

Portuguese government and central bank authorities sought to soothe global markets as well by assuring the soundness of the country's financial system.

Meanwhile, silver for September delivery was down 0.19% at $21.468 a troy ounce, while copper futures for September delivery were up 0.07% at $3.269 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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