Forexpros – Gold prices dipped in early Asian trading on Tuesday after U.S. ratings agency Moody’s downgraded several European nations and slapped negative outlooks on Austria, France, and the U.K., placing the three in danger of losing their AAA ratings.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,723.25 a troy ounce, down 0.10%.
Gold futures were likely to test support at USD1,706.85 a troy ounce, Friday’s low, and resistance at USD1,754.95, Thursday’s high.
Greece’s parliament voted to accept tough austerity measures in order to win access to EUR130 billion in bailout money, as required by the European Union, the European Central Bank and the International Monetary Fund.
The move sent the euro and stocks firming worldwide on relief that Greece had veered away from the edge of bankruptcy, which would have sent shockwaves through financial systems worldwide.
On Tuesday, Moody’s announced it had downgraded Italy, Portugal, Spain, Slovakia, Slovenia and Malta, and slapped negative outlooks on Austria, France and the U.K.
The news sparked demand for dollars amid a rush to safety that sent investors selling off gold positions in the process.
Elsewhere on the Comex, silver for March delivery was down 0.29% and trading at USD33.623 a troy ounce, while copper for March delivery was down 0.10% and trading at USD3.832 a pound.
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