SYDNEY(MarketWatch) — Gold futures ticked higher in electronic trading Tuesday, as worries about the spread of the European debt crisis enhanced the metal’s safe-haven investment appeal.
Gold for August delivery GC1Q +0.01% gained $2.20, or 0.1%, to $1,551.40 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
The gains came on a day Asian equity markets plunged as the European sovereign-debt crisis threatened to engulf Italy and Spain. See report on latest Eurogroup statement about the debt crisis.
“Investors are increasingly fearful that the debt crisis could spread to Italy. That is one of the main factors that is helping underpin gold prices,” Yi Long Ong, investment analyst at Phillip Futures in Singapore said.
Gold is traditionally seen as good store of value in uncertain economic conditions.
Greek contagion concerns pushed the dollar up against the euro, which Ong said indicates rising investor appetite for less-risky asset classes.
“The stronger dollar over the past few days is a reflection of safe-haven demand, and the increased safe-haven demand is also benefiting gold,” Ong said.
The dollar index DXY +0.60% , which compares the U.S. unit with a basket of six major currencies, rose to 76.276, from 75.981 in North American trading late Friday. Read more about currencies.
Silver tracked gold higher, while the broader metals complex declined Tuesday.
Silver for September delivery SI1U -0.53% added 8 cents, or 0.1%, to $35.77 an ounce.
September copper HG1U -0.36% fell 3 cents, or 0.6%, to $4.34 a pound.
Platinum for October delivery PL1V -0.41% declined $3.30, or 0.2%, to $1,725.00 an ounce. The September contract for platinum’s sister metal, palladium PA1U -0.50% , lost $4.60, or 0.6%, to $762.85 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
