Futures Market News
Greek, economic troubles push gold futures higher
Jun 10, 2011 03:58 PM
The sovereign debt crisis tearing through Europe and worries about the slowing economic recovery from the global recession are likely to push gold futures to their fourth straight weekly gain, Bloomberg reports.
Debt-hobbled banks in Europe have especially benefited the yellowish metal's performance, as Greece is reportedly on the precipice of defaulting should higher borrowing costs add to the Aegean nation's troubles. The European Central Bank indicated it will raise interest rates for lending, which is likely to push Greece toward default since borrowing additional money to exit its indebtedness is mandated. The nation accepted a bailout in June 2010 and is encountering trouble adhering to a repayment schedule.
"It looks like there’s really no way out. That’s still bullish for gold," Bruce Ikemizu, head of commodity trading at Standard Bank, told the news service.
At 6:55 a.m. on Friday, gold futures slipped 0.04 percent, a 60 cent drop to $1,542.10 per troy ounce.
MarketWatch reports the U.S dollar strengthened, which pushed down gold futures as they two typically perform the inverse of one-another. The dollar index, which measures the greenback’s performance against six counterpart currencies, rose in value.
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: Free eBook — Gold Exposed: Spot Gold versus Gold Futures
Are you interested in trading gold futures but unsure of how to start?
Register for our FREE guide, and learn the ins and outs of the gold markets that will help answer many of your trading questions.
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.