Fell futures trading in gold is restricted in a narrow range during the European morning trading Tuesday as investors worried that the upcoming summit of European leaders would not do much to solve the debt crisis plaguing the region.
In the COMEX division of the New York Mercantile Exchange, fell futures for gold delivery August / August at 1,585.55 USD/Troy per ounce in early European trading, down 0.20%.
And Tdwalt decades August / August in a narrow range between 1581.95 dollars, the lowest price for the day and 1588.15 dollars, the highest price for the day. The prices have risen to its highest level in two days at 1588.95 dollars per ounce on Monday.
It is likely to find gold futures support at 1,546.35 USD/Troy per ounce and resistance at the highest price on June 21 of $ 1,605.25 an ounce.
Investors remained cautious ahead of EU summit scheduled to begin on Thursday, amid suspicions that the euro zone leaders are able to progress to the crisis by increasing financial integration and to allow for the rescue fund to buy government debt.
The German Chancellor (Angela Merkel) has eliminated the hopes that the euro common Tsdralamntqh bonds on Monday, saying the idea “wrong economically” and would have “counterproductive.”
Markets and is looking forward to the auctions of government debt, Italian and Spanish, which will take place later today, after Moody’s rating Khvdtokallh 28 banks of Spain yesterday, amid fears of Madrid’s ability to support its banking sector.
The Spanish government has officially asked on Monday to help up to 100 billion euros to banks from its partners in the euro area.
In the meantime, the Minister of Finance forced the Greek New to resign, because of health problems, while Prime Minister Antonis Samaras he would not be able to attend the EU summit which will take place this week because he underwent surgery for the eyes.
The report showed (GF Kaye) released today that the consumer climate index in Germany rose unexpectedly in June, up 5.8 points from a reading of 5.7 points in the previous month. Analysts had expected the index to remain unchanged at 5.7 points.
In addition, Cyprus has become the fifth country in the euro area requesting financial assistance from Brussels, which has added to concerns of transmission of infection in debt at the level of the single currency bloc. The Fitch downgraded Cyprus to a “junk” on Monday, so as to need for the amount of funds provided by the rescue fund to save the euro area banks, which are greatly troubled the Greek economy.
In spite of the attractiveness of gold is enhanced as a safe haven in times of economic instability, but the debt crisis of the euro area has done little to boost the demand for the precious metal in recent months.
On the contrary, the impact of a weaker euro and dollar on the rise in gold, where the precious metal is now moving along with riskier assets since hitting a record price for the historic last September at 1920 dollars an ounce.
The gold and some of its appeal as a safe haven for the benefit of the U.S. dollar and U.S. Treasury bonds and German bunds, as is known, the strength of the dollar makes the metal less attractive to buyers in other currencies.