MTECHTIPS- Gold trades steady as Spanish debt concerns mount
Gold prices erased earlier losses and traded steady in Asian trading Tuesday after investors looked beyond Greece's market-friendly elections and turned their attention to Spain, where borrowing costs continue to soar. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.03% at USD1,627.45 a troy ounce. Gold hit at a low of USD1,626.95 a troy ounce and a high of USD1,629.75 a troy ounce during the session.Gold futures were likely to test support at USD1,614.35 a troy ounce, the low from June 18, and resistance at USD1,630.85, the high from June 18.Gold trades inversely with the U.S. dollar, and the greenback rose for part of Monday and even early Tuesday as a safety play on fears that despite a market-friendly election in Greece, the European debt crisis is heating up in the larger Spanish economy.Conservative political party New Democracy came out ahead in Greek parliamentary elections on Sunday, which fueled hopes that Greece will stick with the euro.Yet by Monday and into Tuesday in Asian trading, markets quickly began to worry over Spain, where borrowing costs soared.The yield on the Spanish 10-year note soared above 7% on Monday on concerns Spain will run into increasing problems financing itself. WWW.MTECHTIPS.COM 07489294118
Gold prices erased earlier losses and traded steady in Asian trading Tuesday after investors looked beyond Greece's market-friendly elections and turned their attention to Spain, where borrowing costs continue to soar. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.03% at USD1,627.45 a troy ounce. Gold hit at a low of USD1,626.95 a troy ounce and a high of USD1,629.75 a troy ounce during the session.Gold futures were likely to test support at USD1,614.35 a troy ounce, the low from June 18, and resistance at USD1,630.85, the high from June 18.Gold trades inversely with the U.S. dollar, and the greenback rose for part of Monday and even early Tuesday as a safety play on fears that despite a market-friendly election in Greece, the European debt crisis is heating up in the larger Spanish economy.Conservative political party New Democracy came out ahead in Greek parliamentary elections on Sunday, which fueled hopes that Greece will stick with the euro.Yet by Monday and into Tuesday in Asian trading, markets quickly began to worry over Spain, where borrowing costs soared.The yield on the Spanish 10-year note soared above 7% on Monday on concerns Spain will run into increasing problems financing itself. WWW.MTECHTIPS.COM 07489294118
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