Gold futures little changed near 6-week high ahead of EU talks
Gold futures were little changed during U.S. morning hours on Monday, trading close to a six-week high.
Investors looked ahead to a meeting of euro zone finance ministers later in the day to discuss whether to release Greece’s next tranche of aid.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,753.65 a troy ounce during U.S. morning trade, little changed on the day.
Prices traded in a tight range between USD1,748.35 a troy ounce, the daily low and a session high of USD1,754.65 a troy ounce, the strongest level since October 12.
Gold prices were likely to find support at USD1,728.75 a troy ounce, the low from November 23 and resistance at USD1,774.95, the high from October 12.
Investors stuck to the sidelines ahead of a meeting of euro zone finance ministers later in the day to discuss whether to release Greece’s next tranche of aid.
German Chancellor Angela Merkel said she believes a deal can be reached at Monday’s talks, while the French finance minister said over the weekend that an agreement is close.
Market sentiment weakened slightly after separatist parties in Spain’s Catalonia region won the majority of the public vote in elections held over the weekend.
The win underlined fears about a potential negative impact on the euro zone’s fourth largest economy, as Catalonia accounts for nearly 20% of economic activity and provides the most tax revenue to the central government.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.
Elsewhere on the Comex, silver for December delivery eased up 0.1% to trade at USD34.23 a troy ounce, while copper for December delivery added 0.15% to trade at USD3.545 a pound.
Contributed by Forex Pros
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