Investing.com - Gold futures were lower during European morning hours on Monday, moving off the previous session’s seven-month peak as fears over the outlook for global growth pushed investors into the relative safety of the U.S. dollar, while Spain remained at the center of worries that it will need a bailout.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,762.75 a troy ounce during European morning trade, dropping 0.85%.
Earlier in the session prices fell by as much as 1% to trade at a session low of USD1,759.75 a troy ounce. Gold futures rose to a high of USD1,787.55 a troy ounce on September 21, the strongest level since February 29.
Gold prices were likely to find short-term support at USD1,751.95 a troy ounce, the low from September 18 and resistance at USD1,792.25, the high from February 29.
Investors remained cautious, as Madrid is to present its draft budget for next year and announce structural reforms on Thursday, while the results of bank stress tests are due on Friday.
In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Greece also added to concerns, after German magazine Der Spiegel reported over the weekend that the country faces a EUR20 billion budget shortfall, almost twice as much as previously thought.
The risk-off trade environment prompted investors to pile in to the relative safety of the U.S. dollar, with the euro dropping to a seven-day low against the greenback.
The dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, advanced 0.25% to trade at 79.65.
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.
Losses were limited as the precious metal drew support from expectations central banks around the world will continue to introduce monetary easing measures to stimulate the global economy.
The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation.
Gold futures have gained nearly 10% since the beginning of August, buoyed by recent stimulus efforts by major central banks around the world.
Elsewhere on the Comex, silver for December delivery retreated 0.8% to trade at USD34.31 a troy ounce, while copper for December delivery tumbled 1.75% to trade at USD3.748 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,762.75 a troy ounce during European morning trade, dropping 0.85%.
Earlier in the session prices fell by as much as 1% to trade at a session low of USD1,759.75 a troy ounce. Gold futures rose to a high of USD1,787.55 a troy ounce on September 21, the strongest level since February 29.
Gold prices were likely to find short-term support at USD1,751.95 a troy ounce, the low from September 18 and resistance at USD1,792.25, the high from February 29.
Investors remained cautious, as Madrid is to present its draft budget for next year and announce structural reforms on Thursday, while the results of bank stress tests are due on Friday.
In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Greece also added to concerns, after German magazine Der Spiegel reported over the weekend that the country faces a EUR20 billion budget shortfall, almost twice as much as previously thought.
The risk-off trade environment prompted investors to pile in to the relative safety of the U.S. dollar, with the euro dropping to a seven-day low against the greenback.
The dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, advanced 0.25% to trade at 79.65.
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.
Losses were limited as the precious metal drew support from expectations central banks around the world will continue to introduce monetary easing measures to stimulate the global economy.
The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation.
Gold futures have gained nearly 10% since the beginning of August, buoyed by recent stimulus efforts by major central banks around the world.
Elsewhere on the Comex, silver for December delivery retreated 0.8% to trade at USD34.31 a troy ounce, while copper for December delivery tumbled 1.75% to trade at USD3.748 a pound.