Euro zone leaders and economic and financial officials, and international regulators on Wednesday hashed out a plan to confront the sovereign debt crisis as gold prices fluctuated on Thursday morning, according to Reuters.
Though finance ministers spawned disappointment and nervousness by cancelling their Brussels meeting, heads of state, central bankers and officials from the International Monetary Fund helped euro zone leaders establish plans to control Greece's debt obligations. Controlling the sovereign debt crisis and the damage it has caused during the past two years also was a top priority.
"We are looking at ongoing accommodative monetary policy in the U.S. and Europe and this should continue to help gold," commodities strategist Nikos Kavalis with RBS told Reuters. "Macroeconomic uncertainty is also supportive – let's not forget that in addition to the European debt problem we are getting closer and closer to the November 23 deadline for the U.S. debt reduction deal. I cannot be bearish on gold at the moment."
At 8:18 a.m., gold futures increased 0.31 percent, a $5.40 increase to $1,728.90 per troy ounce.
Bullion has gained more than $100 during the past week, prompting CNN to wonder if the yellowish metal has brilliant days ahead. Established early last month, the yellowish metal's all-time high is $1,923.70 per troy ounce, largely propelled by the sovereign debt crisis and debt issues in the U.S., among other drivers.
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.