Futures Market News
Credit agency's warning influences gold futures downward
Dec 06, 2011 07:27 AM
Tuesday saw gold futures dropping in value amid worries about the euro zone nations' credit rating after Standard & Poor's threatened downgrades should high-level European meetings fail to devise a strong plan to deal with the sovereign debt crisis, according to Reuters.
Included within the scope of the credit rating service's warnings are the two top economies of the euro zone, Germany and France, both of which serve as regional pace-setters given their economic stature. A summit of the European Central Bank is among this week's meetings to address the scourge's damaging tendencies.
"Apparently, $1,750 is a tough resistance to break. The market is in need of strong fundamental impetus to break above this mark. Thursday could provide such an impetus as the ECB will meet for its policy meeting," states a note penned by analysts with Credit Suisse, as cited by Reuters. "Ahead of the ECB meeting, we think sideways trading is the most likely outcome."
At 8:08 a.m. on Tuesday, gold futures dropped 0.75 percent, a $13 loss to $1,721.50 per troy ounce.
The weakening rupee of India, which is the globe's top consumer of the yellowish metal, also reduced demand and pulled down gold futures, according to the International Business Times.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.