MW: Gold tops $1,750 as euro gains against the dollar
By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures climbed past $1,750 an ounce Thursday, bouncing back amid dollar weakness after a loss of 1% a day earlier, as news that Greek officials had reached an austerity deal buoyed the euro.
“It’s all about the dollar and the Greek deal is supporting the euro, weakening the greenback,” said Darin Newsom, a senior analyst at Telvent DTN.
Gold for April delivery GC2J +0.86% rose $19.90, or 1.2%, to $1,751.20 an ounce on the Comex division of New York Mercantile Exchange. Prices lost $17.10 on Wednesday.
The dollar index DXY -0.13% , which compares the U.S. unit to a basket of six currencies, recently traded at 78.405, down from 78.589 in late North American trading Wednesday, as the euro EURUSD +0.12% gained ground against the U.S. currency. Read more on currencies.
Gold is “trading opposite the U.S. dollar index again,” said Newsom. “Fundamentals have been tossed out the window for now with the main driver being the direction of the dollar. Gold, crude oil, and most other commodities are rallying.”
European Central Bank President Mario Draghi confirmed Thursday that Greece had reached a deal on austerity measures seen as necessary for the nation to secure a second bailout and avoid a debt default. Read more in Europe Markets.
Against that backdrop, most metals futures gained, though palladium posted a modest decline.
Silver for March delivery SI2H +1.16% climbed 50 cents, or 1.5%, to $34.20 an ounce and March copper HG2H +1.20% gained 5 cents, or 1.2%, to $3.96 a pound.
Platinum for April delivery PL2J -0.10% added $1.50, or 0.1%, to $1,669.60 an ounce but March palladium PA2H -0.49% traded at $715 an ounce, down 90 cents, or 0.1%.
Myra Saefong is a MarketWatch reporter based in San Francisco.
