Gold Prices Break 2-Day Fall on Euro Gain, Volumes Light

Gold broke a two-day losing streak Tuesday on light volume as the euro rose, but sellers matched buyers to keep the price in a narrow range.

The Eurozone's single currency gained on both the dollar and the yen, making gold less expensive for buyers who use non-U.S. currencies.

While some investors took advantage of this week's price dip others remained on the sidelines, waiting for more visibility on if or when Greece will default on its massive sovereign debt.

"Sellers held sway in the gold market Monday despite above-average offtake from physical buyers, particularly from India," UBS analyst Edel Tully wrote in a note. "Overnight and in early (Tuesday) European trading, gold has attempted a cautious climb, amidst light volumes."

European investors were not the only ones taking a wait-and-see posture towards the gold market.

Like us on Facebook   

"Everybody keeps watching what's going to happen (in Greece), and we haven't seen any interest on either buying or selling," an official at a large bullion house in Tokyo, told Reuters.

Industrial and agricultural commodities offered little support for gold, with copper, crude oil and corn all lower.

Global equities were most declining. In Asia, the Nikkei 225 and Hang Seng were down modestly while Singapore's Straits Times rose 0.6 percent. In Europe, Britain's FTSE 100 slipped 0.2 percent, Germany's DAX declined 0.5 percent and France CAC 40 retreated 0.4 percent.

Futures on the Dow Jones Industrial Average, the Nasdaq 100 and the S&P 500 were all lower, indicating losses when U.S. exchanges open.

Gold for April delivery slipped 90 cents to $1,724, while gold for immediate delivery rose $1,719.76.

Silver for March delivery was off 25 cents to $33.50, while silver for immediate delivery added 46 cents to $33.53.

To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail: