Futures Market News
Gold futures push to six-month high after German court approves ESM
Sep 12, 2012 10:58 AM
A German court ruling that approved the bailout fund to aid beleaguered euro zone nations helped drive gold futures to their top value since March, The Wall Street Journal reports.
The ruling by the Constitutional Court paved the way for the European Stability Mechanism to move forward with its mission of helping the fiscal issues of countries in the 17-nation bloc that have been victimized by the sovereign debt crisis. The U.S. dollar, which typically performs the inverse of the yellowish metal, drew down after the court's ruling.
"Along with a positive ruling from the German court, we are optimistic that the euro area is moving further along the road of integration and less instability," states a note penned by Deutsche Bank, which cited the shared currency's boost to gold, silver and other precious metals.
At 11:25 a.m. on Wednesday, gold futures edged down 0.02 percent, a 40 cent slip to $1,734.50 per troy ounce.
Bloomberg reports gold futures are likely to continue climbing should the U.S. Federal Reserve announce additional monetary easing plans to spur the globe's largest economy.
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