Gold for February delivery increased $22.70 to settle at $1,405.60 per troy ounce just before 2 p.m. on the Comex in New York. That 1.6 percent increase was the precious metal's largest gain since November 4. March-delivery silver increased $1.068, a 3.7 percent jump, to $30.323 per troy ounce and may touch $40 per troy ounce next year, according to a Bloomberg survey.
"There was movement in the European currencies," Frank McGhee, head dealer at Integrated Brokerage Services in Chicago, told Bloomberg. "It's a flight-to-quality into the dollar and the metals."
March-delivery palladium climbed 2.6 percent, a $20.10 boost to $787.20 per troy ounce on the New York Mercantile Exchange while April-delivery platinum increased $16.20 to $1,757.20 per troy ounce, a 0.9 increased.
One report indicated economic expansion in France slowed down more than was predicted for the third quarter.
"Europe's debt problems will keep a floor under gold prices," said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago.
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.