By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures edged lower in electronic trading Friday in a choppy session for the metal, after European leaders failed to secure unanimous support for a new fiscal treaty but vowed to pursue an intergovernmental deal without all members.
Gold for February delivery GC2G -0.11% lost $1.20, or 0.1%, to $1,712.70 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
Gold had earlier closed the North American session at its lowest level in more than a week on disappointment about the European Central Bank’s decision not to extend a bond-buying program. Read more about Thursday's metals session.
For gold, such purchases in Europe would enhance the metal as a store of value amid fears ECB easing would spur currency debasement.
Markets absorbed details emerging from the European summit of leaders in Asian trading on Friday, after the meeting of 27 European leaders failed to achieve unanimous support for a new agreement on stricter fiscal co-ordination, but the group said it would pursue an intergovernmental treaty with some members.
“We’re doing everything we can to save the euro,” French President Nicolas Sarkozy said at a press conference Friday.
At the summit, European Council President Herman van Rompuy said that members hadn’t come to an agreement on euro bonds but that euro-area member states would continue to work on fiscal integration. See report on European Union summit.
The broader metals complex diverged, with silver leading the gains.
Silver for March delivery SI2H +0.32% added 27 cents, or 0.9%, to $31.80 an ounce.
Copper for March delivery HG2F -0.23% gained 1 cent, or 0.3%, to $3.51 a pound.
January platinum futures PL2F -0.28% lost $1, or 0.1%, to $1,493.40 an ounce, while palladium for March delivery PA2H -2.00% dropped $9.85, or 1.5%, $665.45 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
