GOLD NEWS UPDATES 26.06.2012 (10.11pm):- SINGAPORE: Gold prices held steady above $1,580 an ounce in Europe on Tuesday ahead of this week's European Union summit, with investors awaiting more clarity on how euro zone leaders will tackle the bloc's simmering debt crisis.
Prices have regained some lost ground, having slid last week after the Federal Reserve disappointed those who had expected more aggressive stimulus measures to kick-start growth, a move that would have kept up pressure on long-term interest rates.
They have found little impetus for a recovery, however, as the euro continues to fall, sliding to a two-week low on Tuesday, and as concerns over the outlook for Spain and Greece keep up pressure on the wider markets.
Spot Gold was little changed at $1,584.50 an ounce at 1022 GMT against $1,584.08 late on Monday, while U.S. gold futures for August delivery were down $3.40 an ounce at $1,585.00.
"Gold is capped on the upside by disappointment post-Fed, while on the downside, we have some bargain hunting, and a bit of physical buying into the troughs," Societe Generale analyst Robin Bhar said.
"We are stuck in a fairly small range here, in the 1570-1600 area, certainly until the weekend when we will get to hear more on how the euro zone will be (tackled)."
The two-day summit in Brussels on June 28-29 will be the 20th time EU leaders have met to try to resolve a crisis that has spread across Europe since it began in Greece in early 2010.
Risk aversion was elevated in the financial markets after a formal request from Spain for European funds and Moody's mass downgrade of 28 of its banks, plus news that Cyprus had become the fifth euro zone nation to request a bailout.
The euro declined, stock markets fell and Spanish and Italian government bond yields extended the previous day's sharp gains as scepticism grew that EU leaders will produce significant measures to stem the debt crisis.
"Time is running out for policymakers in the euro zone to announce specific steps to closer fiscal integration and a detailed plan for tackling the debt crisis," VTB Capital said in a note.
"Leaders in the monetary union will have to move quickly, otherwise sentiment is likely to remain negative and the dollar would only hold higher as pressure on gold prices resumes yet again."
Prices have regained some lost ground, having slid last week after the Federal Reserve disappointed those who had expected more aggressive stimulus measures to kick-start growth, a move that would have kept up pressure on long-term interest rates.
They have found little impetus for a recovery, however, as the euro continues to fall, sliding to a two-week low on Tuesday, and as concerns over the outlook for Spain and Greece keep up pressure on the wider markets.
Spot Gold was little changed at $1,584.50 an ounce at 1022 GMT against $1,584.08 late on Monday, while U.S. gold futures for August delivery were down $3.40 an ounce at $1,585.00.
"Gold is capped on the upside by disappointment post-Fed, while on the downside, we have some bargain hunting, and a bit of physical buying into the troughs," Societe Generale analyst Robin Bhar said.
"We are stuck in a fairly small range here, in the 1570-1600 area, certainly until the weekend when we will get to hear more on how the euro zone will be (tackled)."
The two-day summit in Brussels on June 28-29 will be the 20th time EU leaders have met to try to resolve a crisis that has spread across Europe since it began in Greece in early 2010.
Risk aversion was elevated in the financial markets after a formal request from Spain for European funds and Moody's mass downgrade of 28 of its banks, plus news that Cyprus had become the fifth euro zone nation to request a bailout.
The euro declined, stock markets fell and Spanish and Italian government bond yields extended the previous day's sharp gains as scepticism grew that EU leaders will produce significant measures to stem the debt crisis.
"Time is running out for policymakers in the euro zone to announce specific steps to closer fiscal integration and a detailed plan for tackling the debt crisis," VTB Capital said in a note.
"Leaders in the monetary union will have to move quickly, otherwise sentiment is likely to remain negative and the dollar would only hold higher as pressure on gold prices resumes yet again."
