Monday saw gold futures driving higher in price amid doubts about officials in the euro zone doing enough to control the debt scourge compromising the integrity of regional banks and public finance systems, Bloomberg reports.
The precious metal gained in value for a second straight day following policy makers' decision against using the European Central Bank to augment the rescue fund to be used for the debt-hobbled euro zone. The precious metal also climbed in response to monetary policy efforts in the U.S. to preserve growth also driving inflation higher.
"Gold investor interest has stabilized, and physical demand continues to emerge, albeit at softer levels," states a Monday report by analyst Suki Cooper with Barclays Capital in New York. "We continue to expect gold prices to be cushioned amid the seasonally strong period for demand, and this remains key before investment demand returns to the driver's seat. We retain our positive view on gold, given the macro backdrop."
At 10:53 a.m. on Monday, gold futures climbed 1.16 percent, an $18.90 lift to $1,655 per troy ounce.
The demand for bullion is particularly strong in Asia, according to The Wall Street Journal, which also noted the deamnd is seasonal.
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