Gold futures edged back above $1,500 an ounce Tuesday, but showed little
decisive direction as traders were reluctant to take positions ahead of
Greece's closely watched vote on austerity measures.
The most actively traded contract, for August delivery, was
recently up $3.70, or 0.3%, at $1,500.10 a troy ounce on the Comex
division of the New York Mercantile Exchange.
Futures Monday settled below the $1,500 mark for the first
time in more than five weeks, under pressure from a pause in investor
demand for a safe-haven and lingering downward momentum after the yellow
metal shed more than $50 an ounce in a two-day selloff at the end of
last week.
Greek lawmakers are expected to vote Wednesday on an austerity
plan to secure financial support from the European Union and
International Monetary Fund. Worries about the ability of Europe's
monetary union to manage its weaker members' sovereign debt has sent
investors into gold during the last 12 months, helping the metal set
repeated record highs.
Precious metals are viewed by some as a refuge during
instability in other markets on the belief that it holds its value
better than other assets.
"Gold and silver remain weak," said William Adams, head of
research with FastMarkets. "Given the uncertainty over Greece we are
surprised they have not attracted more safe-haven buying."
Silver also ended at a five-week low Monday, but edged higher
along with gold Tuesday. July-delivery silver rose 0.2%, to $33.655 a
troy ounce.
Some traders were content to stay on the sidelines ahead of
the vote, leaving futures little direction. Greek approval of the
budget-cutting measures would likely dampen demand for refuge assets
such as gold, but could also boost commodities on the back of an
expected strengthening of the euro and weakness in the dollar.
Dollar-denominated raw materials such as gold can receive a
boost when the greenback falls, as it makes the futures cheaper for
buyers using other currencies.
Platinum and palladium, demand for which is largely driven by
industrial and automotive uses, outpaced gold's gains early Tuesday.
Platinum for July delivery was recently up 0.9%, at $1,687.90 a troy
ounce. September-delivery palladium rose 1.1% to $732.40 an ounce.