Tuesday is likely to see gold futures drop in value as investors cash in profits from Monday, when the yellowish metal achieved its largest one-day climb in two weeks and notched its top price in two weeks, Bloomberg reports.
The emergence of dire financial troubles for Italy threatens the political livelihood of Prime Minister Silvio Berlusconi, who faces pressure to resign as well as a no-confidence vote orchestrated by political rivals in the opposition. The sovereign debt crisis has sunk its claws into the Mediterranean nation, which has displaced Greece as the focus of damages caused by the scourge.
"Fundamentals are stronger than before with Italy on the brink of default and the E.U. crisis more complicated than before," states a report to investors penned by analyst Pradeep Unni with Richcomm Global Services in Dubai, according to Bloomberg. "Retracements and corrections are possible as we climb above $1,800, but stay invested."
At 7:54 a.m. on Tuesday, gold futures rose 0.12 percent, a $2.10 rise to $1,793.20 per troy ounce.
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