Forexpros – Gold prices dipped early Thursday, taking a breather after a brief rally fueled by investors rushing to the precious metal in search of a safe haven ahead of a European summit of Finance Ministers.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1742.15 a troy ounce during early Asian trading, shedding 0.15% and slightly off from a session high of 1744.65.
Gold futures were likely to find short-term support at USD1706.05 a troy ounce, the low of December 6 and resistance at USD1746.85, the high of December 7.
In Europe, finance ministers will meet later this week to work out a plan to end the European debt crisis, which may include calling for tougher fiscal guidelines among member nations.
While eurozone countries operate one currency under one Central Bank, fiscal policies such as taxation and government spending are left to individual governments.
Imbalances that arose under such a scenario helped fuel the current crisis.
The fate of the upcoming meeting remains up in the air despite earlier optimism, as rumblings emerging out of Germany that it may take more time to hammer out a plan dampened hopes that light may be breaking at the end of the tunnel.
That sparked a flight from the euro to gold, often a safe haven when paper currencies run into volatility.
Elsewhere on the Comex, silver for March delivery dropped 0.31% to trade at USD32.51 a troy ounce, while copper for March was flat at USD3.554 a pound.
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