Gold rises as bargain hunting extends on Greek hopes
Published May 28, 2012 08:39PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.19% at USD1,574.15 a troy ounce.
Gold hit at a low of USD1,573.05 a troy ounce and a high of USD1,580.85 a troy ounce during the session.
Gold futures were likely to test support at USD1,551.15 a troy ounce, the low from May 24, and resistance at USD1,594.35, the high from May 22.
Fears that Greece may exit the eurozone have sent gold prices plunging in recent weeks, although the metal rebounded last Friday after bottom fishers began snapping up nicely priced positions, and that trend continued through Tuesday.
European debt crisis fears have sent investors ditching the euro in exchange for the dollar, gold's traditional hedge, and a rising dollar often translates into falling gold prices.
Polls have shown the conservative New Democracy political party is gaining ground ahead of June 17 elections, and may garner enough votes to patch together a coalition government in favor of sticking with the euro.
Yields have been spiking in Spanish government auctions on concerns Spain will feel financial strain as it sets to prop up the Bankia financial institution, yet investors stuck with gold over greenbacks earlier Tuesday.
Elsewhere on the Comex, silver for July delivery was down 0.35% and trading at USD28.288 a troy ounce, while copper for July delivery was down 0.11% and trading at USD3.464 a pound.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.