Forexpros – Gold futures swung between small gains and losses on Tuesday, remaining close to a six-week high after Italian Prime Minister Silvio Berlusconi’s government won a budget vote, but the results indicated he has lost majority.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,793.65 a troy ounce during U.S. morning trade, edging 0.14 higher%.
The December contract traded between a range of USD1,785.35 a troy ounce, the daily low and USD1,798.25, the daily high.
Italy’s Parliament approved a critical budget vote after the opposition abstained with 308 votes in the 630-seat parliament. The results indicate that Berlusconi has lost majority in parliament, fuelling speculation over his imminent resignation.
Elsewhere, Greek media outlets reported earlier that Lucas Papademos will be appointed as the country’s new prime minister. Papademos is a former Bank of Greece Governor and European Central Bank Vice President.
Gold is often considered a haven during times of financial turmoil and a refuge from political uncertainty.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.1% to trade at 77.05.
Gold prices often move inversely to the U.S. dollar, as gold becomes cheaper for buyers using other currencies.
Meanwhile, gold traders will be paying close attention to speeches from Federal Reserve Bank of Minneapolis President Narayana Kochlerkaota and from Philadelphia Fed President Charles Plosser later in the day for any hints regarding further easing measures.
On Monday, Boston Fed President Eric Rosengren said that the central bank “must remain aggressive to combat the weak labor market”.
The comments added to speculation the Fed could introduce fresh stimulus measures to boost the U.S. economy after Fed Chairman Ben Bernanke said last week that an additional round of asset purchases was a “viable option”.
Elsewhere on the Comex, silver for December delivery shed 0.22% to trade at USD34.74 a troy ounce, while copper for December delivery dipped 0.07% to trade at USD3.533 a pound.
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