Europe’s plan pressures the dollar but also takes away safe-haven appeal
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures swerved between small gains and losses Thursday as the U.S. dollar traded lower, but some of the metal’s safe-haven appeal diminished after European leaders agreed on a plan to try contain the region’s sovereign-debt crisis.
Gold for August delivery GC1Q +0.01% added $1.10, or 0.1%, to $1,598.10 an ounce on the Comex division of the New York Mercantile Exchange.
The metal is vying to snap a two-day losing streak after reaching a record $1,602.40 an ounce Monday.
In addition to the help from the lower dollar, gold also benefitted from nagging concerns that the new plan might not be enough to put Europe back on track.
“While this raises the chances that a solution will be presented, there is no reason for euphoria ... as several attempts at finding an agreement have already failed,” analysts at Commerzbank said in a note to clients Thursday.
The dollar index DXY -0.82% , which compares the U.S. unit with a basket of six currencies, fell to 74.286 from 74.788 in late North American trading on Wednesday.
September silver SI1U +0.32% wavered between small gains and losses alongside gold. Silver recently added 2 cents, or 0.1%, to $39.53 an ounce.
Copper had traded lower and held losses in early trading. Copper for September delivery HG1U -0.53% declined 2 cents, or 0.6%, to $4.41 a pound.
The draft plan in Europe would allow the European Financial Stability Facility to buy bonds in the secondary market while extending the maturity of loans and lowering interest rates, thus reducing the debt loads of the countries in trouble, according to media reports.
