Following nearly 5 percent losses earlier this week, gold futures are poised to recover some of that drop on Wednesday amid concerns of investors driven toward the precious metal to store wealth as the interminable euro debt scourge drives on, according to Bloomberg.
Tuesday losses of 2.1 percent augmented Monday's drop of 2.8 percent. Reuters reports gold futures have lost about 6 percent of their value thus far this month, serving as the worst December performance since 2008. As the debt scourge pummels the common currency of the European Union, the U.S. dollar is climbing higher in value, toward its highest price in 11 months against the shared monetary unit.
"If you're a gold investor now, you're torn between two worlds: a recovering U.S. market and Europe falling to pieces," analyst Tom Price with UBS told Bloomberg. Investors are "trying to weigh out which one actually dominates the gold price, and for at least the next week, the gold price is going to struggle because of the improving U.S. market outlook."
At 7:48 a.m. on Wednesday, gold futures slipped 2.05 percent, a $34.10 drop to $1,629 per troy ounce.
After having begun the year at roughly $1,400 per troy ounce, gold futures continue driving toward an 11th consecutive year of annual gains.
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