Gold trapped in rangebound trade; Iraq, Ukraine in focus
Gold prices swung between small gains and losses in rangebound trade on Tuesday, as investors continued to monitor geopolitical developments in Iraq and Ukraine. Gold trapped in rangebound trade; Iraq, Ukraine in focusGold fluctuates in rangebound trade On the Comex division of the New York Mercantile Exchange, gold for August delivery dipped 0.24%, or $3.20, to trade at $1,315.20 a troy ounce during European morning hours. Futures held in a range between $1,314.60 and $1,318.70 an ounce.
Gold ended Monday’s session up 0.14%, or $1.80, to settle at $1,318.40. Prices were likely to find support at $1,276.20, the low from June 19 and resistance at $1,322.50, the high from June 20. Also on the Comex, silver for September shed 0.26%, or 5.4 cents, to trade at $20.91 a troy ounce.
Concerns about ongoing violence in Iraq lingered, as militants from the Islamic State of Iraq and the Levant seized control of key areas near the border with Jordan and Syria over the weekend.
Iraqi Prime Minister Nuri al-Maliki has agreed to a July 1 deadline to create a new government, a step required by Washington if Baghdad receives U.S. assistance in battling the insurgents. Meanwhile, in Ukraine, separatist leaders agreed to a ceasefire with government forces until June 27, following months of heavy fighting. Gold is often considered a haven during times of geopolitical turmoil. Elsewhere in metals trading, copper for September delivery declined 0.13%, or 0.4 cents, to trade at $3.138 a pound.