November 11, 2011 / 22:28 IST
Forexpros -
Forexpros – Gold futures moved sharply higher in U.S. trade Friday, on weakness in the U.S. dollar and after the Italian Senate voted to approve a package of austerity measures aimed at securing debt assistance.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,777.25 a troy ounce during early U.S. trade, gaining 0.99%, or USD17.35, after hitting a low of USDS1,745.95.
The Italian Senate approved, by a vote of 156 to 12, to approve the budget-cutting measures promised to the European Union in exchange for assistance in reining in the country's national debt of USD2.6 trillion.
Yields on Italy's 10-year bonds fell for the second day after rising to record levels earlier in the week, nearing the 7% threshold that prompted Ireland, Portugal and Greece to seek bailouts.
Passage of the measure was expected to be a precursor to the appointment of former European Union commissioner and economist Mario Monti to succeed outgoing Prime Minister Silvio Berlusconi.
Meanwhile in the U.S., the University of Michigan reported Friday that its Consumer Sentiment Index rose more than expected to 64.2 in November, up from 60.9 the previous month.
The University's index is based on a survey of approximately 500 consumers and rates the relative level of current and future economic conditions in the U.S. Economists had forecast the index to rise to 60.1 for the period.
Wall Street shares jumped on the news from Italy, on pace for their fourth gain in five sessions; The Dow Jones Industrial Average rose 2.38% to 12,177.10, the Nasdaq Composite Index added 1.96% to 2,676.58 and the S&P 500 gained 2.11% to trade at 1,265.85.
In late afternoon trade, European shares rallied on hopes that Italy would avoid succumbing to regional debt contagion, with France's CAC leaping 2.79% to 3,150.38, Britain's FTSE 100 advanced 1.8% to 5,542.79, while Germany's DAX surged 3.26% to 6,059.29.
A lower dollar helped to buoy gold futures, as a stronger greenback makes gold futures purchases more expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.08% to 76.98.
On the Comex, silver for December delivery rose sharply by 1.35% to trade at USD34.56 a troy ounce, while copper for December delivery jumped 2.15% to trade at USD3.446 a pound.
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