Gold futures are set to lose value Thursday as a result of the leaders of Germany and France announcing they agreed on the best method of assisting Greece secure a second phase of emergency bailout aid, Bloomberg reports.
Angela Merkel and Nicolas Sarkozy plan to share those results in Brussels Thursday, just before euro zone leaders convene to discuss methods of restricting the sovereign debt crisis. The two leaders conducted a marathon session that began Wednesday afternoon and persisted beyond midnight.
"Gold is suffering a bit after the agreement between France and Germany on Greece," Peter Fertig, owner of Quantitative Commodity Research in Germany. "It's reducing a little bit the fear of a collapse."
At 7 a.m. on Thursday, gold futures slipped 0.16 percent, a $2.60 drop to $1,599.50 per troy ounce.
The Associated Press reports Merkel, Sarkozy and Jean-Claude Trichet, president of the European Central Bank met Wednesday to discuss the sovereign debt crisis, a scourge that has been ongoing for 21 months. Gold futures have largely benefited from concerns about debt-hobbled banks and weakened public finance systems.
The euro zone leaders' meeting is set to begin in Brussels at noon.
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.