Shutterstock photo
Markets

Gold futures hit 3-day low as Greece debt fears ease

Shutterstock photo

Shutterstock photo

Forex Pros - Gold futures were down for a second day on Wednesday, trading at a three-day low as fears over a Greek default eased, but losses were limited as a weaker U.S. dollar supported prices.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,532.95 a troy ounce during late Asian trade, shedding 0.23%.

It earlier fell as much as 0.38% to USD1,530.45 a troy ounce, the lowest price since May 27.

Greek media outlets reported earlier that the Greek government's mid-term fiscal plans were expected to be finalized by Wednesday night or Thursday morning.

Fitch Ratings said on Tuesday that the debt-laden country will probably get the loans needed to avoid default.

Gold found support as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.27% to hit 74.47, after earlier dropping to a four-week low of 74.44.

Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.

Meanwhile, Mexico's central bank expanded its gold reserves in April, purchasing 5.93 tons of the precious metal worth approximately USD282 million, according to data released by the International Monetary Fund. In March, the bank bought more than USD4 billion in bullion.

Russia's central bank added 13.72 metric tons of gold in April, raising its total gold reserves to 824.83 tons.

According to the World Gold Council, in 2010 central banks became net buyers of the precious metal for the first time in two decades, as they reduce their reliance on the U.S. dollar as a reserve currency.

Elsewhere, silver for July delivery slumped 0.68% to trade at USD38.23 a troy ounce during late Asian trade, while copper for July delivery dipped 0.18% to trade at USD4.185 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