Forexpros – Gold prices rose in Asian trading Monday on news that eurozone finance ministers have agreed to provide Spain with EUR100 billion in bailout assistance, which sent the euro rising and the dollar falling.
The U.S. dollar and gold often trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.81% at USD1,604.35 a troy ounce.
Gold hit at a low of USD1,600.55 a troy ounce and a high of USD1,609.25 a troy ounce during the session.
Gold futures were likely to test support at USD1,580.75 a troy ounce, the low of June 7, and resistance at USD1,609.25, the earlier high.
Gold rose on news that Spain will be able to recapitalize its banks thanks to the EUR100 billion in financing made available by eurozone finance ministers.
The news sent the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, down 0.71% at 82.32.
A risk-on session ensued, which was bullish gold as well as higher-yielding assets such as the euro and Asian equities.
Elsewhere on the Comex, silver for July delivery was up 1.38% and trading at USD28.863 a troy ounce, while copper for July delivery was up 1.15% and trading at USD3.355 a pound.
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