Thursday saw gold futures fall as preoccupations about the sovereign debt scourge spread uncontrollably, keeping investors jittery, according to Reuters.
Costs and expenses to insure 5-year government debt in Spain and France rose to record highs as the spread among 10-year bonds in Germany and France scaled to euro-era highs, suggesting the debt crisis is driving toward the region's larger economies. Germany hosts the euro zone's largest economy, trailed by those of France and Italy in that order.
Despite the drops in value, there remains an air of optimism surrounding the precious metal. Though hedge fund manager John Paulson reduced his ETF bullion holdings, one analyst suggested he remains interested in the precious metal, albeit with a different strategy.
"Paulson may be moving to gold equities or physical gold. After all even with ETFs there is counter-party risk," analyst Robin Bhar with Credit Agricole told Reuters. "He may be switching holdings from one gold vehicle to a safer gold vehicle."
At 8:08 a.m. on Thursday, gold futures slipped 1.37 percent, a $24.30 fall to $1,750 per troy ounce.
Protests have broken out in Italy, where new Prime Minister Mario Monti is set to unveil his strategy for dealing with the sovereign debt scourge attacking the euro zone's third-largest economy, according to The Associated Press.
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