FX:Gold futures rebound as Greek debt talks remain in focus
Forexpros - Gold futures regained strength on Tuesday, bouncing off a seven-day low as markets continued to monitor negotiations on restructuring Greek debt, while a broadly weaker U.S. dollar and some mild bargain buying underpinned prices.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,729.55 a troy ounce during early European morning trade, edging 0.27% higher.
It earlier rose by as much as 0.55% to trade at a session high USD1,732.35 a troy ounce.
Futures were likely to find support at USD1,714.55 a troy ounce, Monday’s low and a seven-day low and resistance at USD1,765.85, the high from February 3.
Greek Prime Minister Lucas Papademos was expected to meet with coalition leaders in a bid to agree on requirements for a second bailout later in the day, after postponing talks on Monday and failing to finalize an agreement over the weekend.
European Union officials have said a final agreement on Greece’s EUR130 billion bailout much be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.11% to trade at 79.10.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Some mild bargain buying also lent support, after futures fell nearly 3% in the past two trading. Gold prices fell to USD1,714.55 a troy ounce on Monday, the lowest since January 26.
Despite the recent slump in prices, HSBC Holdings said gold's long-term bullish trend remains intact, supported by safe haven demand amid an uncertain global economic outlook and hopes of monetary easing in the world's key economies.
The lender kept its 2012 gold price forecast unchanged at USD1,850 an ounce, it said in a report published Monday.
Elsewhere on the Comex, silver for March delivery shed 0.45% to trade at USD33.60 a troy ounce, while copper for March delivery fell 0.65% to trade at USD3.839 a pound.
