Gold futures were ebbing and flowing on Wednesday near the threshold price of $1,800 per troy ounce, raised and lowered by political and fiscal happenings in the euro zone's third-largest economy, according to published reports.
Italy's Prime Minister Silvio Berlusconi announced Tuesday he will step down after 17 years in power and the prospect of a new hand to guide the nation enduring the sovereign debt crisis pulled down the price of gold, MSN reports. But concerns about Italy's inability to control the sovereign debt scourge as indicated by the large size of government bond yields pushed gold prices up, according to Reuters.
"The market is now running into the first technical resistances around $1,800 and the rally could slow down a little bit from here," states a note penned by Credit Suisse, according to Reuters.
At 8:01 a.m. on Wednesday, gold prices fell 0.03 percent, a .60 cent fall to $1,798.60 per troy ounce.
Less than eight weeks separates the yellowish metal from achieving its 11th consecutive year of annual gains. When bullion touched the price of $1,800 per troy ounce on Tuesday, it returned to values it had not seen in almost seven weeks.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.