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.
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