Gold futures were on the upswing on Monday morning, pushing toward a third consecutive day of gains on the first trading day of October, Reuters reports.
Gone is the month of September, which proved to be an uncommonly volatile month for the precious metal. Despite setting a record high of $1,923.70 per troy ounce during the first week of the month, gold futures had the biggest monthly value loss since September 2008. Monday's driver is preoccupations about an inability to contain the sovereign debt crisis to the euro zone, where it has ravaged banks and public finance systems.
"Investors who may not have the patience to wait for a political solution to the debt crisis from policy makers may seek out gold as a portfolio diversifier," states a Monday note from analyst James Steel with HSBC Securities USA, as cited by Bloomberg.
At 7:48 a.m. on Monday, gold futures gained 2.22 percent, a $36 increase to $1,658.30 per troy ounce.
Bloomberg reports finance chiefs from the euro zone are set to convene in Luxembourg on Monday to discuss strategies of preserving the integrity of banks should Greece default.
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.
