Gold Slightly Gains as Concerns on Euro Zone’s Debt Fade

Gold futures slightly gained on Tuesday after a volatile session as the concerns over euro zone debt problems eased while US stock markets closed higher.

Gold future contract for June delivery gained 0.1 percent or $1.40 to settle at $1,651.10 per ounce on the Comex division of the New York Mercantile Exchange. Gold plunged in its earlier sessions as investors shifted their focus towards the greenback on its safe haven status due to worries over euro zone’s sovereign debt crisis.

However, the recent successful bond auction in Spain and improved Germany’s investor confidence eased the worries over the single currency region.

Analysts from Commerzbank commented, “Growing fears Spain may take advantage of the bailout fund, in the medium to long term, gold should be able to assert its status as a store of value and recommence its upswing.”

The lower US dollar also supported gold prices as the dollar index DXY which measures the US dollar’s performance versus is six major rival currencies fell to 79.474 on Tuesday as compared to 79.562 on Monday’s North American trading session.

Among other metals, copper futures contract for May delivery gained 0.5 percent or $0.02 to settle at $3.65 per pound while silver futures contract for May delivery surged 1 percent or $0.30 to $31.67 per ounce.

Platinum futures contract for July delivery advanced 0.6 percent or $8.90 to $1,584.70 per ounce while its sister metal palladium for June delivery climbed 1.7 percent or $11.25 to settle at $661.95 per ounce for the day.

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