Gold bullion for immediate delivery slipped $1.72, 0.1 percent of its value, to $1,383.63 per troy ounce just after 11 a.m. London time. Immediate-delivery silver hardly changed at $29.2225 per troy ounce while palladium remained at $751.90 per troy ounce. Platinum increased 0.3 percent to $1,729.50 per troy ounce.
"With downgrade threat set to intensify euro-zone default fears we expect gold to remain underpinned by investment demand for some time to come," according to a report by James Moore, an analyst at TheBullionDesk.com in London.
As European nations struggle to emerge from the debt crisis, the central bank will lend the nations' banks nearly 150 billion euros ($196 billion) for a three-month period that will see them through year-end liquidity requirements.
"The euro zone still looks uncertain, supporting gold," Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul, told Bloomberg. "Since many see gold rising further next year, there's demand to buy on dips, which actually helps keep the metal from falling significantly at year-end."
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.