On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.27% at USD1,555.25 a troy ounce. Gold hit at a low of USD1,553.55 a troy ounce and a high of USD1,559.05 a troy ounce during the session.
Gold futures were likely to test support at USD1,549.85 a troy ounce, the low from May 29, and resistance at USD1,594.35, the high from May 22. Gold traditionally falls when the dollar rises, and the greenback was in demand earlier.
Spain’s government is set to manage a EUR19 billion recapitalization program for the Bankia financial institution, while the regional government of Catalonia has asked Madrid for help refinancing its debts.
Reports that Spain will issue bonds to bolster the banking sector and regional governments — when yields in public debt auctions have already spiked to around 7 percent — fueled fears the European debt crisis is heating up in Spain and sent the euro falling and the dollar rising earlier.
However, gold tested support and rose, especially sentiment that China will roll out stimulus measures to spur more growth.
Monetary stimulus measures among major currencies tend to send gold prices rising.
In the U.S. on Friday, the government will release the May jobs report, one of the most anticipated of economic indicators in the country.
Talk of disappointing hiring data my fuel murmurs of monetary easing to come in the U.S., which would send gold rising as well.
Elsewhere on the Comex, silver for July delivery was down 0.13% and trading at USD27.755 a troy ounce, while copper for July delivery was down 0.49% and trading at USD3.461 a pound.
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