Futures Market News
Gold futures likely to follow euro's slump
Dec 19, 2011 06:13 AM
While the precious metal last week lost roughly 20 percent of its record price of $1,923.70 per troy ounce from this past September 6, the U.S. dollar skyrocketed to its highest value against the euro since this past January. But, despite the losses, the precious metal still will be in demand as investors look for a good deal, one investing consultant told the news service.
"Gold is still an attractive investment, and while a stronger dollar will cap gains, prices should remain supported as there are many buyers looking out for a bargain," chief investment comsultant Tao Jinfeng with Haitong Futures of China told the news service.
At 6:53 a.m. on Monday, gold futures slipped 0.16 percent, a $2.60 loss to $1,595.30 per troy ounce.
France, the euro zone's second-largest economy to the that of Germany, has been advised by Fitch Ratings that its credit rating is under scrutiny for a possible downgrade, according to Reuters.
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