Shutterstock photo
Markets

Gold futures climb to 2-week high on persistent EU concerns

Shutterstock photo

Shutterstock photo

Forex Pros - Gold futures were up for a third day on Tuesday, climbing to a two-week high as worries that the euro zone's sovereign debt crisis was worsening boosted the safe haven appeal of the precious metal and lifted euro-denominated gold to an all-time high.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,519.95 a troy ounce during late Asian trade, edging 0.09% higher.

It earlier rose as much as 0.12% to USD1,520.45 a troy ounce, the highest price since May 11.

Gold prices in euro rose to a record high of EUR1,081.40 an ounce for the second consecutive day.

On Monday, Fitch Ratings lowered the outlook on Belgium's credit rating to negative, saying that political deadlock complicates efforts to cut the euro zone's third highest debt load.

The news added to ongoing concerns over the region's debt crisis after Fitch cut Greece's debt ratings by three notches on Friday, while Standard & Poor's cut its outlook for Italy to negative from stable on Saturday.

Meanwhile, the weekend defeat of Spain's ruling socialists in local elections raised worries about the country's ability to meet fiscal targets.

Spain's economy is bigger than the economies of Portugal, Ireland and Greece combined. Those three countries have asked for bailouts in the face of rising debt imbalances.

Weakness in the dollar had also contributed to gold's strength. The dollar dipped after St. Louis Federal Reserve President James Bullard said Monday that the central bank was likely to keep policy rates on hold after the second bout of quantitative easing comes to an end on June 30.

The dollar index was down 0.23% to hit 76.11, retreating from a seven-week high. Gold prices often move inversely to the greenback, as gold becomes less expensive for buyers using other currencies.

Elsewhere, silver for July delivery gained 0.9% to trade at USD35.39 a troy ounce during late Asian trade, while copper for July delivery jumped 1.4% to trade at USD4.035 a pound.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos