By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch)—Gold prices pushed higher on Thursday, rebounding some from two-week lows hit the prior session as euro-zone concerns reached a fever pitch, and as investors rushed for the perceived safe haven of the dollar.
Gold for December delivery GCZ2 +0.22% rose $7.20, or 0.4%, to $1,760.80 an ounce on the Comex division of the New York Mercantile Exchange. On Wednesday, the metal slid $12.80 to $1,753.60 an ounce.
Spain will present its 2013 budget Thursday along with expectations for a set of economic reforms, which markets believe could pave the way for a bailout request sometime in October. Protests in Madrid and a snap election called by Catalonia pushed borrowing costs to levels not seen since September on Wednesday. See: What to expect from the Spanish budget.
China was providing the lift for markets Thursday, with Europe stocks pushing slightly higher and China stocks soaring on reports the country’s central bank injected a record amount of liquidity into the banking system this week. Read: China moves to lift equity markets, confidence.
The ICE dollar index DXY +0.08% , which measures the greenback against a basket of six other currencies, fell to 79.725 from 79.920 in late Wednesday trading in North America.
A stronger dollar puts pressure on dollar-denominated commodities, making them more costly for holders of other currencies, and making them less appealing as an investment.
Physical demand for gold remained firm as mining strikes continued for several companies in South Africa, including AngloGold Ashanti Ltd. AU -3.18% ZA:ANG -3.87% and Gold Fields Ltd. GFI +0.55% ZA:GFI -2.78% .
Gold also continues to see support from a report earlier in the week that showed central banks continue to buy gold.
Copper for December delivery HGZ2 +0.53% rose 2 cents, or 0.5%, to $3.73 a pound, while silver for the same month SIZ2 +0.35% rose 19 cents to $34.13 an ounce.
Within other metals, October platinum PLV2 +0.18% rose $3.60, or 0.2%, to $1,637.90 an ounce, while palladium for December delivery PAZ2 +1.25% gained $5.65, or 0.9%, to $631.50 an ounce.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
