Gold futures were losing value on Monday, pulled down by snags during negotiations to secure the second round of bailout aid for Greece, according to Reuters.
Troubles in the Aegean nation drove down the value of the shared currency of the European Union as leaders in the debt-hobbled country are running into challenges in agreeing with austerity measures in order to acquire the bailout aid. Much of that tranche will be used to pay off obligations from the first tranche and stave off defaults that will negatively impact world markets.
"It's been a bit of a rollercoaster, the relationship between gold and the euro," analyst Nikos Kavalis with RBS told the news service. "One day it's positive, one day it's negative. But this morning, dollar strength, or euro weakness, is clearly affecting gold."
At 7:22 a.m. on Monday, gold futures slipped 0.94 percent, a $16.30 drop to $1,724 per troy ounce.
The International Business Times reports concerns are widening for Greece's ability to stay afloat and not default on its sizable sovereign debt obligations, which is projected to have a negative impact on global economic development.
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.
