Speculation about deepening financial trouble for Portugal helped boost the price of precious metals futures Tuesday morning.
As Portugal prepares to auction 10-year bonds on Wednesday, gold futures for February delivery rose $3 on the Comex to $1,377.10 at 11:25 a.m. EST. Silver futures for March delivery gained 66.4 cents to trade at $29.25 per troy ounce, while platinum futures for April delivery climbed $19.90 to $1,765 per troy ounce.
The emerging potential that the European Union will be forced to bail out yet another struggling nation "translates into people seeking safe-haven refuge, especially in gold and silver," Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, told Bloomberg News.
Portugal's bond auction is scheduled to be the first conducted by Europe's most indebted nations this year. The nation's 10-year debt has yielded in excess of 7 percent during 10 of the past 62 days. Less than one month after Greek and Irish 10-year debt yielded more than 7 percent, those nations sought bailouts.
"The market is very concerned about the way Europe is evolving financially," Sin stated.
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.