A third straight day of losses awaits gold futures on Wednesday as investor demand for the precious metal as storage will decrease after a British newspaper reported Germany and France are nearing an accord to boost the size of the regional rescue fund, Bloomberg reports.
The biggest and second-biggest regional economic powers, respectively, reportedly are close to increasing the European Financial Stability Fund to 2 trillion euros, according to The Guardian. With the imminent agreement and a regional summit for euro zone finance ministers scheduled for this weekend, bullion is poised to suffer the consequences.
"The price of gold has not really profited from the growing uncertainty," states a note penned by analysts with Commerzbank. But there "would certainly be grounds for a rise in price; it is becoming increasingly clear that a fast and comprehensive solution to the euro zone debt crisis will not be found at the EU summit this weekend."
At 7:57 a.m. on Wednesday, gold futures slipped 0.19 percent, a $3.10 drop to $1,649.70 per troy ounce.
Though the situation with the EFSF is becoming more clear, The Wall Street Journal reports the sovereign debt scourge remains a force to be reckoned with as it causes concerns throughout the euro zone.
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