Futures Market News
Gold futures propelled higher by ECB leader's remarks supporting euro
Jul 26, 2012 12:47 PM
Gold futures pushed well higher than $1,600 per troy ounce on Thursday and notched its top gains in about three weeks of trading in the aftermath of the president of the European Central Bank making strong comments endorsing the common currency of the European Union, according to published reports.
Reuters reports the euro advanced more than 1 percent against the U.S. dollar in the aftermath of Mario Draghi saying the institution he leads is set to exert top efforts for the sake of the 17-nation monetary unit.
"You've got a rise in the euro, which means a weaker dollar, and a risk-on environment, so everything that looks like a risky asset goes up," analyst Nic Brown with Natixis told Reuters. "Gold has been trading just like a commodity (lately) and is behaving like one today."
At 10:36 a.m. on Thursday, gold futures climbed 0.4 percent, a $6.50 lift to $1,619.20 per troy ounce.
Bloomberg reports policy makers with the U.S. Federal Reserve are preparing to convene to discuss interest rates, which will be announced on August 1.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Euro/Dollar in a Time of Crisis
Sign up for our FREE report and gain insight about the current global crisis through our extensive research and analysis!
Download this exclusive report as we examine current global events, the present impacts on market prices and volatility, and potential outcomes of the Eurozone crisis.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.