Precious metals' prices increased on Monday as China declined to increase rates this past weekend and eurozone leaders looked forward to a summit later this week to discuss halting the debt crisis tearing through banks, Bloomberg reports.
February delivery gold futures increased $10.20 in New York reaching $1,395.20 per troy ounce. March-delivery silver futures surged $0.895 to $29.50 per troy ounce. March-delivery palladium futures climbed $24.30 to $757 per troy ounce and January delivery platinum
futures went up $23.20 to $1,698.50 per troy ounce.
"Gold is rising along with other commodities as investors buy raw materials in anticipation of even higher prices," Liu Yangyi, a trader at Beijing Zhong Jing He Investment, told Bloomberg. "The potential for further tightening in China remains a risk."
Though China did increase reserve requirement ratios last week, this weekend saw no increases. For the third time since early November, China required its banks to inject more funds into the central bank. The eurozone nations will meet at a summit on December 16 and 17, where the topic of unified euro area bonds will be on the table. Italy, Belgium and Luxembourg endorse the concept, while France and Germany are against it. Leaders from Germany and France said late last week the nations must cooperate for the sake of the euro's strength.
"The ongoing uncertainty over euro zone debt and increasingly inflationary pressures in China create a positive environment to future bullion gains," according to a report by James Moore, an analyst at TheBullionDesk.com.
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.