Investing.com – Gold futures regained strength on Tuesday, as the previous day’s sharp drop created buying opportunities for investors, while lingering fears over the euro zone’s sovereign debt crisis continued to support prices.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,823.55 a troy ounce during late Asian trade, climbing 0.72%.
It earlier rose as much as 1.06% to trade at a daily high of USD1,836.15 a troy ounce.
On Monday, gold futures fell nearly 2.5% as sharp losses in global equity markets prompted investors to sell the precious metal to cover losses elsewhere.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the euro zone’s sovereign debt crisis and worries over the global economic outlook.
The Financial Times reported on Monday that Italy's Finance Ministry held talks with Chinese officials about “significant” purchases of Italian bonds and investments in local companies.
Despite the report, Italian bond yields crept higher ahead of a closely-watched Italian bond auction later in the day.
Gold prices remained supported amid fears over a potential Greek debt default and concerns that ratings agency Moody's will downgrade the credit ratings of France’s three largest banks, BNP Paribas, Societe Generale and Credit Agricole, later in the week due to banks' exposure to Greek government debt.
Wall Street investment bank Morgan Stanley reiterated its positive view on gold in a report published Monday, citing, “a formidable cocktail of macro challenges including financial systemic risk, concern of a double dip recession and sustained low interest rates.”
The lender expects gold prices to average USD1,819 a troy ounce for the remainder of the year and raised its 2012 price forecast to USD2,085 an ounce.
Elsewhere on the Comex, silver for December delivery jumped 1.6% to trade at USD40.86 a troy ounce, while copper for December delivery dipped 0.18% to trade USD3.989 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,823.55 a troy ounce during late Asian trade, climbing 0.72%.
It earlier rose as much as 1.06% to trade at a daily high of USD1,836.15 a troy ounce.
On Monday, gold futures fell nearly 2.5% as sharp losses in global equity markets prompted investors to sell the precious metal to cover losses elsewhere.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the euro zone’s sovereign debt crisis and worries over the global economic outlook.
The Financial Times reported on Monday that Italy's Finance Ministry held talks with Chinese officials about “significant” purchases of Italian bonds and investments in local companies.
Despite the report, Italian bond yields crept higher ahead of a closely-watched Italian bond auction later in the day.
Gold prices remained supported amid fears over a potential Greek debt default and concerns that ratings agency Moody's will downgrade the credit ratings of France’s three largest banks, BNP Paribas, Societe Generale and Credit Agricole, later in the week due to banks' exposure to Greek government debt.
Wall Street investment bank Morgan Stanley reiterated its positive view on gold in a report published Monday, citing, “a formidable cocktail of macro challenges including financial systemic risk, concern of a double dip recession and sustained low interest rates.”
The lender expects gold prices to average USD1,819 a troy ounce for the remainder of the year and raised its 2012 price forecast to USD2,085 an ounce.
Elsewhere on the Comex, silver for December delivery jumped 1.6% to trade at USD40.86 a troy ounce, while copper for December delivery dipped 0.18% to trade USD3.989 a pound.