By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures on Tuesday looked to recoup what they lost in the previous session, with investors eying developments in Europe as Group of Seven finance and central bank officials held a conference call on the euro-zone debt crisis.
Prices, however, pared gains after an unexpected rise in a U.S. services-sector index for May.
Gold for August delivery GCQ2 +0.31% rose $4.50, or 0.3%, to $1,618.40 an ounce on the Comex division of the New York Mercantile Exchange.
Ahead of the U.S. upbeat economic data, gold prices traded around $1,620. They fell $8.20, or 0.5%, on Monday.
The Institute for Supply Management’s services-sector index rose to 53.7% in May from 53.5% in April, the private group reported Tuesday. Economists surveyed by MarketWatch expected the ISM services index to be unchanged last month.
Much of the focus for the gold market, however, is on the Group of Seven call, said Mark O’Byrne, executive director at GoldCore.
“There are unlikely to be any concrete plans emanating from the meeting and therefore gold may seek impetus from elsewhere,” he said. “Should the G-7 signal that further [quantitative easing] or debt monetization on a massive scale is required, it will of course be bullish for gold.”
Japanese Finance Minister Jun Azumi told reporters in Tokyo that officials agreed to work together over the debt crisis surrounding Greece and Spain, according to media reports. He added that a Greek exit wasn’t discussed, according to Bloomberg News.
Investors also looked ahead to Wednesday’s European Central Bank meeting.
Dollar-denominated gold futures gained despite some strength in the greenback. The ICE dollar index DXY +0.29% traded at 82.746, up from 82.528 late Monday, while the euro EURUSD -0.3960% edged lower against the dollar, with the euro buying $1.2457, down from $1.2493. Read more on currencies.
Other major metals traded higher along with gold with the exception of copper, which edged lower.
July copper HGN2 +0.08% lost 1 cent, or 0.3%, to $3.30 per pound.
Silver ranked as the biggest percentage gainer, with the July contract SIN2 +1.35% trading at $28.38 an ounce, up 37 cents, or 1.3%.
Platinum for July delivery PLN2 +1.15% rose $11.20, or 0.8%, to $1,438.50 an ounce and September palladium added $3.30, or less than 0.5%, to $617.20 an ounce.
Myra Saefong is a MarketWatch reporter based in San Francisco.
