Although It Has Struggled To Maintain

Gold prices eased off two-week highs on Tuesday as buying ahead of the COMEX March options expiry waned and the market tracked a weaker euro. In early trading, interest ahead of the options expiry had pushed gold just $4 shy of $1,700 an ounce, but prices weakened to an intraday low as the dollar strengthened by the afternoon in New York. Prices held above the 100- and 200-day moving averages they had breached the previous day after Federal Reserve chairman Ben Benanke signaled U.S. interest rates would stay low. Low rates would maintain the low opportunity cost of holding bullion. Spot gold was at $1,684.60 an ounce at 1:55 p.m. EDT, down $7.14 or 0.42 percent, after hitting a two-week peak at $1,696.20 earlier in the day. U.S. gold futures for April delivery settled at $1,684.9 per ...

Gold prices rose on Tuesday, benefiting from gains in the euro ahead of an expected injection of cheap money from the European Central Bank this week, which is lifting appetite for assets seen as higher risk like stocks and commodities. Spot gold was up 0.8 percent at $1,779.69 an ounce at 1503 GMT, while U.S. gold futures for April delivery were up $6.50 cents an ounce at $1,781.40. The precious metal has risen 13.8 percent so far this year, boosted in part by gains in the euro and consequent weakness in the dollar, which makes commodities priced in the U.S. unit cheaper for holders of other currencies. The euro climbed to a three-month high against the dollar ahead of an expected cash injection of 500 billion euros from the ECB on Wednesday. This is seen as buying more time for ...

Gold prices steadied on Monday, having earlier fallen in line with the euro, stocks and other commodities like crude oil, as buyers were tempted back to the market by the metal's retreat towards $1,760 an ounce. Spot gold was at $1,770.09 an ounce at 1439 GMT against $1,772.19 late on Friday, having earlier slipped as low as $1,761.76 an ounce. U.S. gold futures for April delivery were down $6.00 an ounce at $1,770.40. The metal has risen more than 13 percent so far this year and analysts are upbeat about its prospects on expectations that monetary policy will remain loose in key economies, cutting the opportunity cost of holding non-yielding bullion. "I would think that buyers who missed the move higher last week stepped in as we approached $1,760, as longs would have a relatively high ...

(Reuters) - Gold prices fell 1 percent on Monday, in line with the euro, stocks and other commodities, as worries over the euro zone debt crisis and the impact of high crude oil prices on the fledgling economic recovery fuelled risk aversion. Spot gold was down 0.9 percent at $1,764.80 an ounce at 1058 GMT, while U.S. gold futures for February delivery were down $10.30 an ounce at $1,766.10. The precious metal struggled to maintain traction above $1,780 an ounce last week after rising more than 3 percent -- its best weekly performance since late January -- to its highest in three months. "There is nothing to say that gold should directionally pull back, but if it got to a lot of investors' targets, whether that was around the $1,780 an ounce level we saw last week, they will take some ...

(Reuters) - Gold prices bounced back into positive territory on Tuesday, paring earlier losses in line with a rallying euro after a Greek official said the government is drafting an agreement on a second bailout. Spot gold was up 0.3 percent at $1,723.89 an ounce at 1502 GMT (10:02 a.m. EST), having earlier fallen as low as $1,709.29 an ounce, while U.S. gold futures for February delivery were up $1.70 at $1,726.60. A Greek government official said Greece's government is preparing the text of an agreement on a 130 billion euro bailout that will be put to political leaders for approval, suggesting Athens had largely wrapped up talks with lenders on the rescue. A conclusion to the discussions would likely to support gold, although it has struggled to maintain upward momentum as the ...

Gold prices fell on Monday, extending the previous session's 2 percent price drop, as concerns over the progress of Greek bailout talks weighed on the euro and on assets seen as higher risk, such as stocks and commodities. Spot gold was down 0.5 percent at $1,716.44 an ounce at 1442 GMT, while U.S. gold futures for February delivery were down $21.10 an ounce at $1,719.20. The precious metal posted its worst daily performance of the year on Friday after better-than-expected jobs data dampened expectations of another round of U.S. monetary easing. It is still up nearly 10 percent this year, but if more signs emerge that the economy in the United States is recovering faster than the euro zone, pointing to an earlier-than-expected rise in U.S. interest rates and a stronger dollar, gold may ...

Dukascopy Fundamental Analysis EUR France's President Sarkozy claimed the Euro area financial turmoil is stabilizing due the measures applied by European officials. According to Sarkozy Euro region is not at the edge of collapse any more. French President's comments came a day before the first EU summit this year where lawmakers are expected to put end notes on fiscal discipline measures and finalize the statutes of bailout fund. USD Consumer spending was neutral in December, indicating that Americans are rather building up cash reserves than spending their income right away. The 0.0% level was slightly lower than the Bloomberg survey consensus of a measly 0.1% growth. GBP UK house prices stalled in January, Hometrack ltd reported today, mainly caused by the nationwide lack of purchasing ...

Forex News and Events: Risk appetite remains broadly supported following Slovakia's approval of the ESFS during a second parliamentary vote. In addition, there are comments coming from China that suggests that emerging markets countries might be ready to increasing lending support for Europe through IMF funding. While details and official confirmation are very light, the dream of China with its massive reserves swooping in and saving the day, has many giddy with the prospects. We would caution what you wish for, as borrowing from external sources to solve an internal debt crisis is hardly a suitable solution. We suspect that EM nations may have doubts about using their IMF cash to rescue a region where income and general wealth is significantly higher than their own. We are seeing risk ...

Economic Data Analysis One Down, One to Go Relief rally following EU Summit measures - unified political will trumps outstanding questions for now. US debt ceiling issue remains unresolved, despite signs of progress. Preliminary US Q2 GDP to highlight sluggish recovery this week. Preliminary UK Q2 GDP is due this week and is also likely to prove extremely subdued, with household sector still struggling. Hopes for stronger Q3 on rebound of one-off effects in Q2. Financial markets heaved a sigh of relief as the latest EU crisis summit passed a wave of new measures to address the worsening sovereign debt crisis. Amidst measures aimed at supporting Greece directly, including a further €109bn bail out and private sector involvement hoped to total around €40bn, the summit also ...