DY: Gold Futures Fluctuate Amid Lingering Euro Zone Debt Woes
Forexpros – Gold futures fluctuated between small gains and losses on Monday, but remained close to a three-week high as investors continued to eye developments out of the euro zone on new steps to resolve the region’s debt crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,684.25 a troy ounce during U.S. morning trade, easing up 0.07%.
It earlier rose by as much as 0.85% to trade at USD1,696.75 a troy ounce, the highest price since September 23.
At the conclusion of the Group of 20 summit in Paris on Saturday, world financial leaders urged policy makers in the euro zone to deal “decisively” with the region’s ongoing debt crisis.
European leaders were expected to complete the rescue plan at a summit on October 23, in time to present to a meeting of G-20 leaders early next month.
However, hopes over a resolution to the region’s debt crisis were dented after German Finance Minister Wolfgang Schaeuble said the EU summit due to be held on October 23 would not yield a definitive solution to the crisis.
His comments came after German Chancellor Angela Merkel said “the dream of resolving all problems at the EU summit” was impossible.
The comments weighed heavily on the euro and other risk-sensitive assets and boosted demand for the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.61% to trade at 77.34, reversing an earlier loss of as much as 0.25%.
Global financial service provider UBS said in a report earlier, “Too much uncertainty remains in the market with questions over issues such as guarantees of European sovereign debt, a Greek default and debt sustainability.”
The lender added that, “While there is no rush to buy gold here, it is equally clear that investors who are long the yellow metal are not willing to let go of holdings either.”
Elsewhere on the Comex, silver for December delivery shed 0.48% to trade at USD32.01 a troy ounce, while copper for December delivery fell 0.46% to trade at USD3.393 a pound.
