Gold is trading in a narrow range ahead of the Spanish debt auction

Japanese Stock market pushed Comex down

Gold trading remained fixed in a specific range on Tuesday, under the pressure of expectations of higher borrowing costs in Spain in an auction of government debt in the short term later in the day.

In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for June delivery was at 649.65, $ 1 per ounce during the early European trading, down by 0.01%.

And trading of gold in the month of June to June in a narrow range between 646.25, $ 1, the lowest level of the day at 654.15, $ 1 higher level for the session.

The futures contracts for gold is likely to find support at N 613.55, $ 1 an ounce, the lowest level since (4) April and resistance at 685.25, $ 1, the highest level since April 2.

Spain was preparing to auction $ 3 billion euros of government bonds of 12 and 18 months later on Tuesday, as fears mounted that the government will not be able to meet deficit reduction targets in the face of a looming recession.

The sentiment was hit on Monday after rising cost of insurance on the Spanish sovereign debt to a record high on Monday, above 6% for the first time since early December.

Bond auctions have become the main drivers of risk in recent months as traders try to gauge the ability of highly indebted countries in the euro area to finance themselves.

Earlier in the day, Japan said it would provide $ 60 billion to the International Monetary Fund to expand its resources and the protection of the global economy, the debt crisis in Europe.

There were fears of renewed infection for more debt in the euro area in recent weeks amid fears that Spain would be next in the euro area in need of a rescue plan.

Although gold is Mmlaz safe in times of economic instability, but the debt crisis in the euro area have reduced the appeal of the precious metal in recent months.

The resulting high dollar and weak euro to influence the gold for its value and its loss.

Elsewhere in the COMEX silver for May delivery rose by 0.3% to trade at 31.45 dollars per ounce, while copper for May delivery fell 0.65% to trade at 3.604. Lbs.