Futures Market News
Debt in Greece likely to drive gold futures
Oct 04, 2011 07:16 AM
Tuesday saw gold futures rise in value amid additional concerns about Greece's navigation through the sovereign debt debacle, MarketWatch reports.
Investors were driven toward safe-haven assets as the Dow Jones Industrial Average lost 2.3 percent of its value on Monday as Europe and Asia also saw stock prices drop in value. Greece is waiting on its second tranche of emergency international aid, at least some of which will be used to make repayments on the first round of aid, which was awarded in June 2010. The Aegean nation announced it will not reach the deficit target for which it was aiming.
But one analyst issued a word of caution to investors and observers believing the precious metal will no longer demonstrate the volatility it demonstrated last month.
"There is still potential for further slides should profit taking again set in," analyst Eugen Weinberg with Commerzbank told Reuters. "I'm not really convinced gold weakness is over. But gold is definitely living up to its status as a safe haven at the moment. That is very reassuring for investors."
At 7:52 a.m. on Tuesday, gold futures slipped 0.69 percent, an $11.50 drop to $1,646.20 per troy ounce.
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