MTECHTIPS;-Gold futures edge up from 1-month low on Spain bailout hopes
MTECHTIPS;-Gold futures edge up from 1-month low on Spain bailout hopes
Gold futures edged from the lowest level in a month during European morning hours on Tuesday, as the U.S. dollar weakened on reports Spain was moving closer to requesting a bailout.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,743.45 a troy ounce during European morning trade, gaining 0.35%. Prices rose by as much as 0.4% earlier in the session to hit a daily high of USD1,744.15 a troy ounce. Gold futures touched a low of USD1,730.15 a troy ounce on Monday, the weakest level since September 13. Gold futures were likely to find support at USD1,705.55 a troy ounce, the low from September 13 and resistance at USD1,755.45, the high from October 14.The U.S. dollar was broadly lower against its major counterparts, as investors continued to hope that Spain will formally request a bailout in the coming weeks and activate a bond buying program by the European Central Bank. The Wall Street Journal and Financial Times each cited an unnamed Spanish official in separate reports Monday as saying Madrid is ready to request a credit line from the ECB.Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout. A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
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