Gold futures were increasing in value on Monday, pushing toward the milestone mark of $1,700 per troy ounce, according to Reuters.
While one driver of the precious metal's climb was futures in Japan gaining value, the performance of bullion also was tempered by losses to the common currency of the European Union, which suffered a setback when negotiations between Greece and its private creditors did not advance. Approved for a second tranche of emergency bailout aid, the Aegean nation remains in danger of defaulting on its loan obligations.
"A disaster in the euro zone would not necessarily spark gold buying as even gold would be seen as a risk and investors would likely be prompted to sell, while geopolitical risk such as tension surrounding Iran would boost the safe-haven appetite for gold," vice-president Akira Doi with commodity brokerage Daiichi Commodities in Tokyo told Reuters.
At 6:36 a.m. on Monday, gold futures increased 0.81 percent, a $13.50 increase to $1,677.50 per troy ounce.
Speculative purchases of bullion also helped push its value up despite a solidifying U.S. dollar, according to Dow Jones Newswires.
Risk Disclosure
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
