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.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.