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Gold futures steady near 3-week high as EZ debt woes persist

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Forex Pros - Gold futures fluctuated between small gains and losses on Wednesday, holding steady near a three-week a high as mounting concerns over the debt crisis in the euro zone boosted the appeal of the precious metal, however gains were limited by a broadly stronger U.S. dollar.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,526.75 a troy ounce during late Asian trade, edging 0.05% higher.

The gold contract traded between a range of USD1,522.45, the daily low and USD1,528.15, the daily high.

On Tuesday, Christian Noyer, a Governing Council member of the European Central Bank, ruled out a restructuring of Greece's debt, calling it a "horror story" that would leave the nation shut out of financing for years.

Meanwhile, rating agency Moody's said Portugal and Ireland would be at risk of multi-notch credit downgrades, pushing their ratings into junk territory in the event of a default by Greece.

The worries boosted gold prices in euro to a fresh record high of EUR1,087.25 an ounce. Euro-denominated gold has risen to a record high for three consecutive sessions as investors bought gold as a refuge against economic and political uncertainty.

"We prefer gold in euro and pound right now, considering the breadth and depth of risk-sapping variables that currently prevail," UBS said in a report late Tuesday.

The dollar was broadly higher against its major counterparts, limiting gains in gold. The dollar index was up 0.37% to hit 76.34, after earlier rising to 76.40.

A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.

Elsewhere, silver for July delivery shed 0.3% to trade at USD36.49 a troy ounce during late Asian trade, while copper for July delivery rose 0.82% to trade at USD4.054 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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