Gold futures rose in electronic trading Monday as European leaders signaled policy action to keep the currency bloc together, helping to stir hopes for more stimulus efforts.
Gold for August delivery GCQ2 rose $2.90, or 0.2%, to trade at $1,618 an ounce on the Comex division of the New York Mercantile Exchange during Asian hours.
Rising optimism that European leaders will take action to keep euro zone together supported gold prices last week.
More indications came over the weekend as head of the Eurogroup, Jean-Claude Juncker reportedly said that the euro-zone members and the European Central Bank (ECB) will soon act to save the euro.
The ECB holds a policy meeting this week. Read more on Juncker’s comments.
At the same time, a recent round of soft data has fuelled expectations of additional easing measures from the U.S. Federal Reserve when it meets this week. More liquidity tends to create upside for gold as the metal is seen as a safe store of value.
The broader metals complex tracked gold higher in Asia trading.
September silver SIU2 gained 11 cents, or 0.4%, to $27.61 an ounce. Copper for September delivery HGU2 added 2 cents, or 0.7%, to $3.45 a pound.
September palladium PAU2 rose $3.65, or 0.6%, to $575.50 an ounce, while platinum for October delivery PLV2 put on $2.20, or 0.2%, to $1,410.40 an ounce.
MarketWatch
