Proven gold in circulation during the European morning trade Thursday, achieving stability after three days of heavy losses, as investors continued to focus on the political turmoil in Greece, and the health of the banking sector in Spain.
In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for June delivery was at 594.95, $ 1 per ounce during the early European trading, down by 0.05%.
It was trading in the month of June, between 588.45 1, dollars per ounce lowest price during the day and 596.85 daily, $ 1 an ounce, the lowest price on Wednesday, prices fell to the lowest price 579.95,1 since Jan. 3.
The futures contracts for gold is likely to j very short-term support at 572.65, $ 1 an ounce, the lowest price during the period January 3 and resistance at 642.95, 1, dollars per ounce the highest price since May 7.
Gold prices have lost nearly 4% in the three sessions preceding Thursday, because of growing concerns about an escalation of the debt crisis in the euro area, prompting investors to the direction to the dollar as a safe haven.
Although the high attractiveness of gold as a safe haven in times of economic instability, but the debt crisis in the euro area reduced the demand for precious metals. In addition to the weakness of the euro and the rise in gold.
Investors continued to control political developments in Greece, as a country burdened with debt and struggling to form a coalition government after elections end of the week.
Alexis Tsepraz leader’s second-largest party in Greece attempts to form a new government on Wednesday Wednesday, giving the leader of the Socialist Party Evangelos Venizelos last chance to try to form a government on Thursday.
And seemed to opportunities on the formation of a weak coalition government after two failed attempts, making new elections within three to four weeks are the most likely outcome, raising new fears that Greece will not have a government in a timely manner to secure the slide coming from international aid next month.
In the meantime, the growing concerns about the health of the banking sector in Spain, after the Bank of Spain received a formal request on Wednesday evening to buy a stake in Pankia, the fourth-largest lender in the country.
The yield on Spanish bonds with 10 years of above 6% in early European trading to reach its highest level since early December, reflecting investor fears about holding riskier assets.
And increased losses of gold so far this week, after prices fell below the required level prices, triggering sell orders amid fresh bearish chart signals.
And traders expect that the price of gold at 567.1 dollars per ounce after falling to less than that at,, 6201, on Tuesday, at the lower end of the price range that had been held since early April.
Some participants in the market that the big losses in stocks and other commodity markets accelerated in the sale of gold, as traders are forced to sell their stocks of gold in order to raise money to cover losses elsewhere.
In October 2008, gold prices have fallen by 18% because of the turmoil in global financial markets that led to losses in global equity and commodity markets. The precious metal rose by 23% in the next two months.