Gold futures for August delivery were last up $8.50, or 0.6 percent, at $1,508.70 per ounce. Trade has ranged from $1,500.80 to $1,513.80.
The big headline for the day was that the Greek parliament approved a 28 billion-euro ($40 billion) austerity package, which was needed for the struggling country to receive the next round of aid from the IMF, EU and ECB.
This was seen by global markets as a step forward in Europe's quest to solve its sovereign-debt crisis. Gold often would trade softer after this type of news; however, the metal was hardly affected as investors expected the vote to pan out as it did.
“The reduction of safe-haven demand was priced in over the last several days as most level-headed observers were quite certain these measures were going to pass,” a US-based fund manager said.
“This has allowed gold to behave as a commodity, which is why prices moved higher in tandem with base metals, oil and equities,” he added.
Light sweet crude (WTI) oil futures on the Nymex were up $2.57, or 2.5 percent, at $95.46 per barrel, while Comex copper has risen by 11 cents, or 2.7 percent, to $4.2205 per pound.
Meanwhile, the Dow Jones Industrial Average has climbed by 73 points, or 0.61 percent, to 12,263.
Gold also found support from a stronger euro, which was recently trading up about three-quarter-of-a-cent at 1.4428 against the dollar.
“Greece is yesterday's news. The next big date that I'm looking at is August 2. That's the deadline set by the Treasury Department to vote on an extension of the debt ceiling or face a credit event,” the fund manager said.
“The markets are pretty sure that's going to get done, but there's still some tension, which should support gold,” he added.
Treasury Secretary Timothy Geithner on Wednesday warned against a Republican proposal not to raise the $14.3 trillion debt ceiling in favour of prioritizing interest payments and cutting spending.
“[This Republican plan] is unwise, unworkable, unacceptably risky, and unfair to the American people. There is no alternative to enactment of a timely increase in the debt limit,” Geithner wrote in a letter to Republicans.
“At its core, your [proposal] is based on an untested and unacceptably risky assumption: that if the US were to continue to pay interest on its debt - yet failed to pay legally required obligations to its citizens, servicemen and women, and businesses - there would be no adverse market reaction and no damage to the full faith and credit of the US. This idea is starkly at odds with the judgement of every previous administration, regardless of party, that has faced debt limit impasses,” he added.
As for the other precious metals, Comex silver for September delivery was up $1.168 to $34.820 per ounce. Trade has ranged from $33.86 to $34.92.
Platinum futures for October delivery on the Nymex were up $35.50 to $1,729.00 an ounce, while the September palladium contract gained by $15.55 to $750.70 an ounce. For the latest updates PRESS CTR + D or visit Stock Market news Today
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