Investing.com - Gold futures inched lower in rangebound trade during European morning hours on Tuesday, as investors worried that an upcoming summit of European leaders would do little to solve the region’s ongoing debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,585.55 a troy ounce during early European trade, shedding 0.2%.
The August contract traded in between a tight range of USD1,581.95, the daily low and a session high of USD1,588.15 a troy ounce. Prices rose to a two-day high of USD1,588.95 a troy ounce on Monday.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,605.25, the high from June 21.
Investors remained cautious ahead of a European Union summit due to begin on Thursday, amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
On Monday, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Elsewhere, Greece’s new finance minister was forced to resign on Monday, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Meanwhile, rating’s agency Moody’s downgraded 28 Spanish banks on Monday, amid concerns over Madrid’s ability to support its banking sector.
Spain’s government formally requested aid from its euro zone partners to bail out its ailing banking sector on Monday. The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion.
Adding to the gloom, Cyprus became the fifth euro zone country to request financial help from Brussels, adding to concerns over the level of debt contagion in the single currency bloc.
Fitch Ratings downgraded Cyprus to "junk" status on Monday, citing the amount of rescue money that would be needed to bail out its banks which are heavily exposed to the troubled Greek economy.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead, as the precious metal has been moving in tandem with riskier assets since hitting a record high of USD1,920 last September.
Gold has lost some of its safe haven appeal to the dollar, U.S. Treasuries and German Bunds, partly as a strengthening dollar makes the metal less attractive to buyers holding other currencies.
Elsewhere on the Comex, silver for September delivery fell 0.7% to trade at USD27.39 a troy ounce, while copper for September delivery dipped 0.45% to trade at USD3.310 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,585.55 a troy ounce during early European trade, shedding 0.2%.
The August contract traded in between a tight range of USD1,581.95, the daily low and a session high of USD1,588.15 a troy ounce. Prices rose to a two-day high of USD1,588.95 a troy ounce on Monday.
Gold futures were likely to find support at USD1,546.35 a troy ounce, the low from June 1 and near-term resistance at USD1,605.25, the high from June 21.
Investors remained cautious ahead of a European Union summit due to begin on Thursday, amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
On Monday, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Elsewhere, Greece’s new finance minister was forced to resign on Monday, due to health issues, while Prime Minister Antonis Samaras said he would not be able to attend this week’s EU summit given that he had just undergone eye surgery.
Meanwhile, rating’s agency Moody’s downgraded 28 Spanish banks on Monday, amid concerns over Madrid’s ability to support its banking sector.
Spain’s government formally requested aid from its euro zone partners to bail out its ailing banking sector on Monday. The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion.
Adding to the gloom, Cyprus became the fifth euro zone country to request financial help from Brussels, adding to concerns over the level of debt contagion in the single currency bloc.
Fitch Ratings downgraded Cyprus to "junk" status on Monday, citing the amount of rescue money that would be needed to bail out its banks which are heavily exposed to the troubled Greek economy.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead, as the precious metal has been moving in tandem with riskier assets since hitting a record high of USD1,920 last September.
Gold has lost some of its safe haven appeal to the dollar, U.S. Treasuries and German Bunds, partly as a strengthening dollar makes the metal less attractive to buyers holding other currencies.
Elsewhere on the Comex, silver for September delivery fell 0.7% to trade at USD27.39 a troy ounce, while copper for September delivery dipped 0.45% to trade at USD3.310 a pound.