Gold dips as Greece optimism grows
Published Feb 17, 2012 01:02PM ET
Updated Feb 17, 2012 01:13PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,722.65 a troy ounce, down 0.33%.
Gold futures were likely to test support at USD1,713.95 a troy ounce, Tuesday's low, and resistance at USD1,739.15, Wednesday's high.
European leaders are close to freeing up EUR130 billion in bailout money for Greece, even though the country may miss a debt-to-GDP target.
Greece's debt is expected to fall to 129% of gross domestic product by 2020, above a target of 120%.
Still, Greece has said it has met demands from its sovereign lenders, mainly by agreeing to tough austerity measures, and sentiment is growing that European leaders are largely in agreement.
Hopes that Greece will receive the money fueled market optimism that sent the euro rising and the dollar falling, which was bullish for gold early in the session.
Comments from hedge fund giant John Paulson that gold was a good bet sent the asset rising earlier as well, although profit-takers cooled the metal's ascent.
Furthermore, waning expectations that the U.S. Federal Reserve will roll out a third round of quantiative easing, which would weaken the greenback and send gold rising, further tempered the yellow metal's performance.
Elsewhere on the Comex, silver for March delivery was down 0.55% and trading at USD33.188 a troy ounce, while copper for March delivery was down 2.18% and trading at USD3.708 a pound.
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Written By: Investing.com
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