Futures Market News
Egyptian strife, inflation fear could benefit precious metals
Feb 01, 2011 08:04 AM
Prices for precious metals are likely to increase following uprisings in Egypt, conjecture about inflation and gold's first monthly drop in value since July, Bloomberg reports.
European inflation hastened to 2.4 percent last month, an unexpected pace believed by economists. Prices for crude oil futures touched their two-month high and Egyptian leader Hosni Mubarak left open negotiations with leaders of a week-old opposition movement that could spell the end of his three decades in power.
A report by analyst Tom Pawlicki of MF Global Holdings cited "bullish issues such as the lack of a cohesive government in Egypt and likely forthcoming inflation signaled by higher oil prices", which might benefit precious metals.
Just before 9 a.m., gold futures were up 0.35 percent, a $4.70 increase to $1,339.20 per troy ounce. Silver futures were up 0.54 percent to $28.32 per troy ounce, a 0.151 percent rise.
Shortly after 7 a.m. in Chicago, platinum futures for March delivery were down 0.5 percent to $1,797.50 per troy ounce. Before 8 a.m. in Chicago, March-delivery palladium futures were up 0.95 percent to $820.05 per troy ounce.
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