By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — Gold futures ticked higher in electronic trading on Thursday, as investors favor the previous metal amid escalating concerns about European sovereign-debt issues.
Gold for August delivery GC1Q +0.05% traded up 90 cents at $1,526.50 an ounce, building on small gains made in the previous session, as escalating worries about the European debt situation gained precedence over a stronger dollar.
On Wednesday, a general strike in Greece and protests, coupled with news that Greece’s prime minister will form a new government and face a confidence vote, weighed on most asset classes. Read more on Greece.
“Gold will continue to benefit from the euro-zone fiscal crisis, which is likely to extend into 2012, and fragile fiscal environments in other developed economies,” said commodity strategists at BNP Paribas.
U.S data out Wednesday disappointed, after manufacturing data came in weak and the core consumer price index posted its biggest rise since July 2008. Read more on U.S. consumer prices.
Sarah Turner is MarketWatch's bureau chief in Sydney.
