Investing.com - Gold futures edged lower during European morning hours on Thursday, as investors were cautious ahead of the start of a two-day summit of European leaders later in the day, amid ongoing concerns over Spain and Greece.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,747.85 a troy ounce during European morning trade, shedding 0.3%.
Prices fell by as much as 0.4% earlier in the session to hit a daily low of USD1,746.85 a troy ounce.
Gold futures were likely to find near-term support at USD1,730.15 a troy ounce, the low from October 15 and resistance at USD1,774.95, the high from October 12.
Investors were looking ahead to the start of a two-day European Union summit on Thursday, although no major announcements on Spain or Greece were expected.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
The yield on Spanish 10-year government bonds was at a multi-month low of 5.47% ahead of an auction of Spanish government debt later in the session.
A stronger U.S. dollar weighed on the precious metal, as investors piled in to the relative safety of the greenback. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, advanced 0.15% to trade at 79.19.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Also Thursday, official data showed that the Chinese economy expanded by 7.4% in the three months to October, matching economists’ forecasts.
Other key China reports, including retail sales and industrial output figures also beat forecasts, easing fears over a ‘hard landing’ in the world’s second largest economy and dampening hopes for near-term monetary easing.
The data came one day after a report showing that U.S. housing starts rose by 15% in September, the fastest pace since July 2008, adding to hopes that the U.S. economic recovery is gaining momentum.
The upbeat housing data reinforced the view that the U.S. economy is improving, raising concern the Federal Reserve might scale back its monetary easing measures.
Elsewhere on the Comex, silver for December delivery fell 0.45% to trade at USD33.08 a troy ounce, while copper for December delivery dipped 0.2% to trade at USD3.742 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,747.85 a troy ounce during European morning trade, shedding 0.3%.
Prices fell by as much as 0.4% earlier in the session to hit a daily low of USD1,746.85 a troy ounce.
Gold futures were likely to find near-term support at USD1,730.15 a troy ounce, the low from October 15 and resistance at USD1,774.95, the high from October 12.
Investors were looking ahead to the start of a two-day European Union summit on Thursday, although no major announcements on Spain or Greece were expected.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
The yield on Spanish 10-year government bonds was at a multi-month low of 5.47% ahead of an auction of Spanish government debt later in the session.
A stronger U.S. dollar weighed on the precious metal, as investors piled in to the relative safety of the greenback. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, advanced 0.15% to trade at 79.19.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Also Thursday, official data showed that the Chinese economy expanded by 7.4% in the three months to October, matching economists’ forecasts.
Other key China reports, including retail sales and industrial output figures also beat forecasts, easing fears over a ‘hard landing’ in the world’s second largest economy and dampening hopes for near-term monetary easing.
The data came one day after a report showing that U.S. housing starts rose by 15% in September, the fastest pace since July 2008, adding to hopes that the U.S. economic recovery is gaining momentum.
The upbeat housing data reinforced the view that the U.S. economy is improving, raising concern the Federal Reserve might scale back its monetary easing measures.
Elsewhere on the Comex, silver for December delivery fell 0.45% to trade at USD33.08 a troy ounce, while copper for December delivery dipped 0.2% to trade at USD3.742 a pound.