CN:Gold climbs to 3-week high on U.S. outlook, EU debt woes
Forexpros - Gold futures were up for a sixth day on Monday, rallying to a three-week high as concerns over the U.S. economy and fears over sovereign debt contagion in the euro zone boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,547.15 a troy ounce during late Asian trade, edging 0.17% higher.
It earlier rose as much as 0.22% to trade at USD1,548.35 a troy ounce, the highest price since June 23. Gold prices were less than 2% away from an all-time high of USD1,577.15 an ounce it hit on May 2.
The U.S. Department of Labor said on Friday that nonfarm payrolls rose by a disappointing 18,000 in June, significantly below expectations for an increase of 89,000, as employers hired the fewest workers in nine months.
The unemployment rate rose unexpectedly from 9.1% to 9.2%, the highest level in six months.
Meanwhile, the euro slumped to a two-week low against the U.S. dollar ahead of an emergency meeting of senior European Union officials to discuss a second bailout package for Greece and the threat of the debt crisis spreading to Italy, the region's third largest economy.
On Friday, shares in Italian bank UniCredit SpA were halted briefly, following a sharp decline, while the cost of insuring Italian debt against default rose sharply.
The cost of insuring Portuguese, Irish and Greek government debt against default surged to euro-lifetime highs.
Gold prices also benefitted from data showing that Chinese consumer prices rose to a three-year high of 6.4% in June, despite ongoing efforts by Beijing to cool prices.
Investors often buy gold and silver as refuges against economic and political uncertainty and as hedges against inflation.
Elsewhere, silver for September delivery shed 0.75% to trade at USD36.45 a troy ounce, while copper for September delivery slumped 0.5% to trade at USD4.383 a pound.
