Thursday saw gold futures increase in value amid a circus-like chaos unfolding in Greece, the emblem of damages caused by the sovereign debt crisis, Reuters reports.
Embattled Prime Minister George Papandreou was preparing to offer his resignation on Thursday morning, the BBC reports. Kicking the Aegean nation out of the European Union to spare the euro, while a popular idea with some analysts, is not a feasible option, Reuters reports the EU said Thursday morning
"The strong demand that we've seen, with gold at $1,650 up until last week, is not there any more," analyst Walter de Wet with Standard Bank told Reuters. "I think in the way gold has been behaving over the past couple of weeks it seems that people prefer to buy euro/gold which makes sense because of all the problems there."
At 8:52 a.m. on Thursday, gold futures lifted 1.52 percent, a $26.30 gain to $1,755.90 per troy ounce.
Five days after euro zone leaders finalized a fund to help indebted nations cope with the sovereign debt scourge, Papandreou said the citizens of the country he leads should vote whether to accept or decline the aid as the Aegean nation teeters on the edge of defaulting on loan obligations. Though the Greek cabinet endorsed the suggestion the next day, his reported offer to resign is likely to impact global markets in both directions.
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