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.
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.