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.
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