Investing.com – Gold futures moved higher in Asian trade Wednesday, in a market focused on European debt and buoyed by a rise in global equities.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,836.75 a troy ounce during early Asian trade, up 0.14%, after hitting a low of USDS1,832.65.
On Tuesday, German Chancellor Angela Merkel expressed confidence that rescue measures to address Greek debt were progressing, and rejected the notion that Greek bankruptcy would provide a quick solution to the euro-zone’s debt crisis.
Stock markets in the U.S. and Europe closed higher on hopes that Greece would take the steps needed to win approval from the ECB, the International Monetary Fund and the European Commission to receive its next batch of funding.
By the end of Tuesday trade, France’s CAC 40 added 1.4% to 2,894.93, Britain’s FTSE 100 rose 0.87% to 5,174.25, and Germany’s DAX advanced 1.85% to end the session at 5,166.36.
Wall Street posted its second consecutive day of gains, as the Dow Jones Industrial Average gained 0.4% to 11,105.85, the Nasdaq Composite Index rose 1.5% to 2,532.15, and the S&P 500 climbed 0.9% to close at 1,172.87.
Concerns over the capacity of debt threatened euro-zone economies, including Portugal, Italy, Ireland, Greece and Spain, to actively address their fiscal woes helped send gold prices to record highs earlier this month.
Bullion has fallen 5% from last Tuesday’s all-time high of USD1,921.05.
Investment bank Morgan Stanley reconfirmed its bullish view on gold in a report published Monday, citing, “a formidable cocktail of macro challenges including financial systemic risk, concern of a double dip recession and sustained low interest rates.”
The lender expects gold prices to average USD1,819 a troy ounce through the end of this year and raised its 2012 forecast to USD2,085 an ounce.
Elsewhere on the Comex, silver for December delivery rose 0.27% to trade at USD41.17 a troy ounce, while copper for December delivery added 0.19% to trade at USD3.980 a pound.