Forexpros – Gold futures moved higher in Asian trade Monday, bouncing back from a fall below USD1,800 an ounce, following dips in global stock markets and concerns over Greece’s ability to secure a new batch of bailout funds.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,824.75 a troy ounce during early Asian trade, up 0.21%, after hitting a low of USDS1,774.65.
Gold earlier dropped nearly USD36, its lowest level in three weeks, as investors scrambled to raise cash to cover losses on global equity markets dragged down by uncertainty over Greek debt.
Earlier Monday, Greece’s Finance Ministry said it had held “productive and substantive discussion” with European and International Monetary Fund officials, in talks aimed at confirming Greek compliance with terms laid out in last year’s USD151 billion bailout.
Greece has been trying to secure a second batch of rescue funds approved by European finance officials in July, in an effort to ward off possible default on its debts.
European shares ended Monday’s session sharply lower, with France’s CAC 40 falling 3%, Britain’s FTSE 100 dropped 2.03%, and Germany’s DAX slumped 2.83%.
Wall Street shares snapped a five-day winning streak, with the Dow Jones Industrial Average losing 0.94%, the Nasdaq Composite Index surrendered 0.36%, and the S&P 500 fell 0.98%.
Global financial service provider Barclays reported earlier Monday that, “Beyond near-term weakness, we remain positive on gold as uncertainty heightens over Europe and the near-term outlook for the U.S., as well financial market instability.”
Elsewhere on the Comex, silver for December delivery slipped 0.33% to trade at USD39.61 a troy ounce, while copper for December delivery dropped 0.63% to trade at USD3.764 a pound.
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