BA:Gold prices ease, but likely to scale new heights during the day, analysts say
Gold prices eased, from record overnight gains, Tuesday but likely to scale new heights during the day, analysts said.
US gold for August delivery was seen trading at $1602.32 an ounce at 12.30 p.m Singapore time while Silver for September delivery was at $40.25 an ounce.
Analysts said the yellow metal is likely to climb back to higher territory and likely to create new highs during the day.
They said investors are likely to remain on the edge until the US debt ceiling issue is resolved.
Analysts also attributed a wider risk-aversion trade that forced US and European banks to sell off their shares and concerns over Italian and Spanish debt situations to gold’s boom.
Meanwhile, the greenback weakened against the euro and a basket of currencies. DXY on Tuesday as the single currency regained some ground after losses in the previous session on worries that the euro zone debt crisis will worsen. The dollar index fell more than 20 percent to around 75.316.
On Monday, the yellow metal created yet another milestone as it broke the $1,600 per ounce mark, fueled by worries about the euro zone debt crisis and the stalemate to reach a deal to raise the U.S. debt limit.
The price of Gold for August delivery closed at a record high of $1,602.40 an ounce Monday, up $12.30 from Friday's close. Silver closed at $40.33 an ounce, up $1.27.
