Investing.com - Gold futures rose to a one-week high during European morning trade on Tuesday, as market participants looked ahead to a congressional testimony from Federal Reserve Chairman Ben Bernanke later in the trading day for further clues on the future of U.S. economic stimulus.
Gold rediscovered some of its safe-haven appeal amid concerns over the outcome of the parliamentary election in Italy, which could threaten financial stability in the euro zone.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,597.10 a troy ounce during European morning trade, up 0.65% on the day.
Prices rose by as much as 0.75% earlier in the session to hit a daily high of USD1,597.90 a troy ounce, the highest level since February 20.
Gold prices were likely to find support at USD1,554.80 a troy ounce, the low from February 21 and resistance at USD1,609.00, the high from February 20.
Gold prices were higher as investors awaited testimony from Fed chief Bernanke for further clues of when the central bank may slow or stop buying bonds.
Market sentiment was rattled last week after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Meanwhile, in Italy, the country’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
The news added to worries that Italian election results could threaten economic reforms and reignite financial instability in the euro zone.
Gold traders also eyed developments surrounding the USD85 billion in automatic U.S. spending cuts, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
Previous budget battles in Washington have rattled financial markets.
Some technical buying also contributed to gains as investors re-entered the market after prices bounced off a key support level.
Market analysts noted that gold prices found support at the USD1,550-level, prompting investors to enter the market and open fresh long positions amid bullish chart signals.
Elsewhere on the Comex, silver for May delivery shed 0.3% to trade at USD28.95 a troy ounce, while copper for May delivery ticked down 0.35% to trade at USD3.549 a pound.
Gold rediscovered some of its safe-haven appeal amid concerns over the outcome of the parliamentary election in Italy, which could threaten financial stability in the euro zone.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,597.10 a troy ounce during European morning trade, up 0.65% on the day.
Prices rose by as much as 0.75% earlier in the session to hit a daily high of USD1,597.90 a troy ounce, the highest level since February 20.
Gold prices were likely to find support at USD1,554.80 a troy ounce, the low from February 21 and resistance at USD1,609.00, the high from February 20.
Gold prices were higher as investors awaited testimony from Fed chief Bernanke for further clues of when the central bank may slow or stop buying bonds.
Market sentiment was rattled last week after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Meanwhile, in Italy, the country’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
The news added to worries that Italian election results could threaten economic reforms and reignite financial instability in the euro zone.
Gold traders also eyed developments surrounding the USD85 billion in automatic U.S. spending cuts, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
Previous budget battles in Washington have rattled financial markets.
Some technical buying also contributed to gains as investors re-entered the market after prices bounced off a key support level.
Market analysts noted that gold prices found support at the USD1,550-level, prompting investors to enter the market and open fresh long positions amid bullish chart signals.
Elsewhere on the Comex, silver for May delivery shed 0.3% to trade at USD28.95 a troy ounce, while copper for May delivery ticked down 0.35% to trade at USD3.549 a pound.