Futures Market News
Debt worries to drive gold futures
Jul 06, 2011 05:01 AM
Debt worries on both sides of the Atlantic Ocean are poised to push up gold prices on Wednesday, Bloomberg reports.
U.S. leader President Obama invited Democratic and Republican lawmakers alike to gather and discuss government finances. He noted he stands against a measure that would serve as a short-term increase to the U.S. debt limit deficit, which has alerted the watchful eyes of credit rating services. Moody's Investors Service forced speculation about Portugal needing an additional bailout by reducing its credit rating.
"Portugal’s four-notch ratings downgrade is a reminder that Europe's debt problems are far from solved," states a report by Edel Tully, a UBS AG analyst in London. "The focus is increasingly on the U.S. debt ceiling debate. An increasing focus on U.S. fiscal worries should also lead to safe-haven and diversification bids."
At 5:40 a.m. on Wednesday, gold futures gained 0.26 percent, a $4 increase to $1,516.70 per troy ounce.
Citing "global economic worries" as the primary driver, the Wall Street Journal reports gold futures surpassed the $1,500 per troy ounce threshold Tuesday afternoon.
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