Investing.com - Gold prices turned higher on Wednesday, as renewed concerns over the debt crisis in the euro zone boosted demand for the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery climbed 0.60% to USD1,607.15 per troy ounce.
Gold futures were likely to test support USD1,591.20, the session low and resistance at USD1,613.46, Monday's high.
Gold prices came off session lows as investor focus shifted away from Cyprus back to Italy amid growing doubts over Italy's ability to form a stable government.
The head of Italy’s center-left alliance Pier Luigi Bersani ruled out forming a coalition on Wednesday, saying that only an “insane” person would want to govern the country.
Investors also remained concerned that the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states, with big bank depositors and senior bond holders forced to suffer losses.
Gold prices were supported after a report by the International Monetary Fund on Tuesday showed the world's central banks continued to stock up on bullion in February. The IMF said central banks have been net buyers of gold for 23 straight months through January.
In the U.S., a report by the National Association of Realtors showed that the pending home sales index slipped 0.4% in February as limited inventory curtailed the market in many areas, but remained at the second highest level in nearly three years.
Elsewhere, Comex silver for May delivery declined 0.46% to USD28.548 per ounce while copper for May delivery slid 0.40% to USD3.430 per ounce.