Forexpros – Gold prices rose Tuesday, erasing losses posted in U.S. and European sessions as investors snapped up positions in the precious metal as the dollar, gold’s traditional hedge, eased up a bit on prior gains.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,613.85 a troy ounce, up 0.36%.
Gold futures were likely to test support at USD1,597.75 a troy ounce, Thursday’s low, and resistance at USD1,632.15, Friday’s high.
Gold weakened earlier in U.S. and European trading as investors bought euro to cover short positions while the dollar continued strong on the coattails for Friday’s stronger-than-expected jobs report out of Washington.
The U.S. added a net 200,000 jobs in December, well above market forecasts for about 150,000 new jobs.
Reports that France and Germany remained steadfast that Greece would not get fresh assistance without sticking with previous aid terms bolstered currencies back and forth, which sent gold up and down before it decided to finally gain in Asia on Tuesday.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 81.31.
Elsewhere on the Comex, silver for March delivery rose 0.75% to trade at USD28.998 a troy ounce, while copper for March delivery traded up 0.04% at USD3.416 a pound.
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