By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures turned higher in choppy trading Tuesday, vying to break a two-session losing run as U.S. oil and equities traded higher.
Gold for June delivery GCM2 +0.28% advanced $4.40, or 0.3%, to $1,653.90 an ounce on the Comex division of the New York Mercantile Exchange.
The contract traded higher for most of the Asia and Europe sessions but lost steam, edging lower as floor trading approached.
It closed at its lowest level in a week on Monday after investors sidestepped gold and instead sought out the U.S. dollar as a haven against euro-zone debt concerns.
Gold struggled for direction as investors weighed the news from Europe but sensed that concerns remained.
A successful bond auction in Spain and data showing German investor confidence rising for the fifth month in a row added to hopes the euro zone is on the mend.
Investors will keep their eyes trained on Europe, however, with “growing fears Spain may take advantage of the bailout fund” and the first round of French presidential elections this weekend, analysts at Commerzbank said in a note to clients.
“In the medium to long term gold should be able to assert its status as a store of value and recommence its upswing,” they said.
U.S. stocks traded near session highs, and the rising tide was also helping gold and oil futures, as well as other commodities. The rally centered around the improved demand at the Spanish bond auction. Read more about U.S. equities.
Also Tuesday, U.S. investors paid attention to housing starts data and a report showing U.S. industrial production unchanged.
The ICE dollar index DXY -0.12% , which measures the dollar against a basket of six currencies, was narrowly lower at 79.502, down from 79.562 late Monday.
Meanwhile, the broader metals complex traded higher, with silver adding to its advance.
May silver SIK2 +1.43% rose 51 cents, or 1.6%, to $31.87 an ounce. May copper HGK2 +0.26% advanced 2 cents, or 0.4%, to $3.64 per pound.
Palladium for June delivery PAM2 +1.58% gained $12, or 1.8%, at $662.70 an ounce.
Platinum for July delivery PLN2 +0.58% rose $10.20, or 0.7%, to $1,586 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
Virginia Harrison is a MarketWatch reporter based in Sydney.
