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Gold prices flat in Asia as euro concerns wane, eyes on U.S.

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Investing.com -

Investing.com - Gold prices traded mosstly flat on Tuesday in early Asia as immediate concerns about Greece's exit from the euro zone waned and investors looked ahead to the Federal Reserve and U.S. data this week.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose 0.01% to trade at $1,281.90 a troy ounce.

Also on the Comex, silver futures for March delivery rose 0.12% to trade at $17.930 a troy ounce.

Elsewhere in metals trading, copper for March fell 0.07% to trade at $2.541 a pound.

Overnight, gold fell more than 1% on Monday, as appetite for safe-haven assets weakened after jitters over the Greek election diminished.

Greek leftist party Syriza formed a coalition government with the right-wing Independent Greeks party on Monday. Syriza won 149 seats in Greece's 300-seat parliament, while the Independent Greeks took 13 seats, giving them a comfortable governing majority.

While the two parties are on opposite sides of the political spectrum, they both reject austerity measures connected with Greece's international bailout.

Syriza leader Alexis Tsipras has pledged to renegotiate the terms of Greece's €240 billion bailout and reverse many of the austerity measures imposed by the European Union and International Monetary Fund, raising the possibility of a major conflict with euro zone partners.

The euro fell to an 11-year low of $1.1098 against the greenback before staging a rebound to $1.1266, as most market analysts expect Tsipras to eventually make compromises to appease international lenders and avoid the so-called "Grexit".

In addition, likely next Greek Finance Minister Yanis Varoufakis has previously stated desire for Greece to remain in euro zone.

Investors will be awaiting the outcome of Wednesday's Federal Reserve policy meeting for further clarification on when interest rates might start to rise.

Friday's preliminary data on U.S. fourth quarter growth will also be in focus.

Gold is up almost 9% so far in 2015, while silver gained nearly 15%, as investors sought safety from volatility in global financial markets.

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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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