Precious metals' prices are increasing as a direct result of concerns about debt-stricken banks in Europe as investors seek safety against the shaky economies and currencies, Bloomberg reports.
Gold futures for February delivery increased 1.3 percent on Monday to $1,385.60 per troy ounce. Silver futures for March delivery went up 2.5 percent to $27.87 per troy ounce. Palladium futures for immediate delivery rose 0.6 percent to $699 per troy ounce.
"Investors are still very concerned about what happens next, what happens to other countries, what happens to the euro," Richard Sichel, who oversees $1.5 billion as chief investment officer at Philadelphia Trust, told Bloomberg.
Investors are concerned the bailout package for Ireland's banks will not end the debt crisis pervading Europe as Portugal and Spain are widely viewed as being next in line for aid. When Greece pursued a bailout in June, gold futures prices reached record values.
"Increased safe-haven flows into gold" are occurring as a result of speculation about Spain and Portugal soliciting aid, according to a report by Mark Pervan, commodity research head at Australia & New Zealand Banking Group.
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