Futures Market News
Gold futures poised to climb as Greece preps scalpel
Jun 24, 2011 05:05 AM
The precious metal dropped 1.8 percent in value on Thursday, which has not occurred since early May, within days after notching record high prices of $1,577.40 per troy ounce. U.S. central bank policy makers vowed to maintain low interest rates on borrowing as Greece prepares to effect deep budgetary cuts.
"The Fed turning hawkish would still weigh on gold prices, but for now it is a very distant concern," states a Friday report by analyst Andrey Kryuchenkov of VTB Capital in London. "Sour global risk sentiment as well as ongoing economic uncertainty will in our view also help to support prices."
At 5:42 a.m. on Friday, gold futures gained 0.07 percent, a $1.10 climb to $1,521.60 per troy ounce.
Reuters attributes the yellowish metal's Friday successes to a dollar that weakened against the euro after Greece gained favor for plans to secure additional emergency aid by slashing domestic budgets.
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