New York 07/08/2012 - Gold futures climbed modestly higher Tuesday, boosted by a rally in the euro and equity markets that resulted from somewhat improved sentiment in Europe. Gold for December delivery on the Comex division of the New York Mercantile Exchange was last up $2.50 at $1,618.70 an ounce. Trade has ranged from $1,611.70 to $1,620.00. “With gold creeping up and forging another minor new high for the move, it would seem like fears toward the eurozone have been temporarily replaced with mostly up beat attitudes,� the CME Group said in a market commentary. “Gold is seeing mostly supportive outside market action to start today, with the euro higher, global equities higher and the rest of the metals complex actually outperforming gold prices in early US Tuesday trade action,� CME added. In gold specific data, SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, recorded inflows of about six tonnes over the past week, with the the bulk of the buying activity occurring on dips below $1,600, Commerzbank AG said. “Even if the gold price is finding it difficult to overcome the $1,600 in any lasting way or to rise much above it, there would appear to be brisk buying interest on the market below this level – gold last week was trading for a time at around $1,585, which should provide the price with a safety net,� Commerzbank said. “In view of the high risks which still exist, especially with respect to the debt crisis in the eurozone, we envisage a marked increase in gold demand over the course of the year, which should cause the price to climb,� it added. In the wider-markets, the euro was last about a third of a cent stronger at 1.2430 against the dollar, while Germany’s DAX and France's CAC-40 were up 0.61 percent and 1.02 percent. US equity markets are also set to open higher. As for the more industrial commodities, light sweet crude (WTI) oil futures for September delivery rose 50 cents to $92.70 per barrel and the most-actively traded Comex copper contract was at $3.4465 per pound, up 5.75 cents. As for the other precious metals, Comex silver for September delivery was last up 25.7 cents at $28.120 an ounce. Trade has ranged from $27.735 to $28.170. “Surprisingly, silver has outperformed the gold market in the early action and that might suggest the lack of a dominating theme within the metals complex,� CME said. “While silver has been limited by talk of burdensome physical supply and slack investment demand recently, the prospect of a minor improvement in the European condition and the promise of eventual additional US easing has helped silver forge a $1.03 an ounce rally off last week's lows,� it added. Platinum futures for October delivery on the Nymex were last up $11.10 at $1,413.00 an ounce, while the September palladium contract was at $585.75 an ounce, up $6.20. “Again lacking any fundamental-based impetus, precious metals are largely looking to the euro for direction, closely tracking the currency’s every move,� Standard Bank said. “[However], worse-than-expected German factory orders numbers (-1.7 percent month-on-on month) could put some downward pressure on the euro, and consequently also on precious metals,� Standard Bank said. Nevertheless, volumes are expected to remain thin this week as the macroeconomic news docket is light and a sizeable portion of market participants are out on summer holiday “Beaches and summer drinks are the order of the day rather than size orders. The ECB, Fed and BoE meeting are behind us; the doldrums lie ahead and things are likely to be very quiet through the first week of September,� Dennis Gartman, editor of the Gartman Letter, said. “After that, the rush upwards toward the election begins in earnest. Let's enjoy the calm for the moment then,� Gartman added.

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