Forexpros – Gold prices fell in Asian trading Tuesday as investors took time to digest the effectiveness of Spain’s EUR100 billion bailout and determine whether it will boost overall European economic growth.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded down 0.38% at USD1,590.75 a troy ounce.
Gold hit at a low of USD1,589.55 a troy ounce and a high of USD1,600.35 a troy ounce during the session.
Gold futures were likely to test support at USD1,583.05 a troy ounce, the low of June 11, and resistance at USD1,606.15, the high from June 11.
Gold rose in previous sessions on news that Spain will be able to recapitalize its banks thanks to EUR100 billion in financing made available by eurozone finance ministers.
However, by Asian trading on Tuesday, doubts arose as to how the money would be used and which banks would receive fresh capital.
Meanwhile, Greece goes to the polls on June 17 where a new parliament could be chosen.
A strong showing by leftist politicians could lead to the creation of a coalition government opposed to sticking with austerity measures tied to bailout funding, which could open the door to a Greek exit from the eurozone.
Growing fears sparked demand for gold’s traditional hedge, the dollar, amid a risk-off trading session, which sent the yellow metal falling.
Elsewhere on the Comex, silver for July delivery was down 0.84% and trading at USD28.377 a troy ounce, while copper for July delivery was down 0.29% and trading at USD3.305 a pound.
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