The leaders of the European nations hosting the region's two top economies told the prime minister of Greece that the Aegean nation will remain a member of the European Union even if it defaults, which dragged down gold futures on Thursday morning, according to Reuters.
Though a default for Greece is possible, German Chancellor Angela Merkel, French President Nicolas Sarkozy and George Papandreou conducted an emergency teleconference Wednesday evening during which the Greek leader underscored his interest in adhering to targets of debt reduction. Gold futures hovered Thursday morning around the $1,800 per troy ounce threshold after touching record highs of $1,923.70 per troy ounce earlier this month.
"It is clear that the gold market is sorely in need of inspiration here," states a note penned by analyst Edel Tully of UBS. "Short of an intensification or calming of the euro zone debt crisis, or a massive surprise from U.S. data, the gold market will likely have to wait for next week's (Federal Reserve) meeting for fresh impetus."
At 8:26 a.m. on Thursday, gold futures fell 1.42 percent, a $25.90 decrease to $1,800.60 per troy ounce.
The Associated Press reports Asian markets rallied as a result of support lent by Merkel and Sarkozy.
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