By Virginia Harrison, MarketWatch
FRANKFURT (MarketWatch) — Gold futures were higher Tuesday, maintaining a gain in electronic trade after earlier notching a fresh high above $1,920 an ounce, as European sovereign-debt woes and global growth concerns boosted the metal’s safe-haven appeal.
Gold for December delivery GC1Z +0.95% traded at $1,887.20 an ounce, a gain of $9.90. The contract traded as high as $1,923.10 in earlier activity.
The contract had risen as high as $1,908.40 an ounce on Monday, according to data from FactSet, though all trade was electronic, as floor trade was closed for the U.S. Labor Day holiday.
“We saw gold surging through session highs, as euro-zone debt concerns continued to plague financial markets,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
The latest stumbling block in Europe’s ongoing sovereign-debt crisis included a suspension of talks between Greece and its regional lenders, as well as pressure on Italy to step up its austerity measures.
On Wednesday, Germany is due to receive a domestic court ruling on the legality of its euro-bailout contributions, which “could reduce the freedom of Germany to help other indebted nations,” Ong said.
“In the short term, gold prices are going to be underpinned by many supporting factors, whether it’s euro-zone debt concerns, slowing growth in the U.S. and the potential for another round of quantitative easing,” she said.
Other metals
The broader metals complex weakened on Tuesday.
December silver SI1Z -1.41% lost 62.4 cents, or 1.4%, to $42.455 an ounce.
Copper for December delivery HG1Z -1.01% shed 4.6 cents, or 1.2%, to $4.0785 per pound.
Platinum for October delivery PL1V -0.53% slipped $2.40, or 0.1%, to $1,882.40 an ounce, while December palladium PA1Z -1.88% declined $15.20, or 1.9%, to $768 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
