Wednesday saw gold futures drive higher in value, capitalizing on demand from investors who are concerned about damages caused by the sovereign debt crisis, Reuters reports.
A business survey indicated euro zone manufacturing in October slowed down because of the debt scourge. The cabinet of debt-hobbled Greece agreed with its leader, Prime Minister George Papandreou, who called for a referendum five days after euro zone leaders finalized an emergency aid fund for nations suffering from the sovereign debt crisis. But demand for the precious metal is high, particularly in the subcontinent where demand is seasonal.
"It's also a good time of the year for physical demand for gold as well as we head into the end of the year because of the Indian wedding season." metals research head Dan Smith with Standard Chartered told Reuters.
At 8:48 a.m. on Wednesday, gold futures advanced 0.89 percent, a $15.30 gain to $1,727.10 per troy ounce.
Should Greece pursue a referendum, the weeks or months needed to set up the vote would likely see the nation default on loan obligations, which would prompt global markets to wobble as well. According to MarketWatch, investors' fears for Greece's options are steadily growing stronger.
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