Gold futures tracked the upward trend of the shared currency of the European Union on Wednesday as all eyes continued monitoring developments in debt-hobbled Greece, Reuters reports.
China, host of the globe's most rapidly developing economy that trails only that of the U.S. for size, said it will purchase additional euro zone debt, which propelled the value of the euro higher.
"It was the case last year that gold didn't do very well on bad news that was deflationary, whereas it does do well on bad economic news that is inflationary," Mitsubishi analyst Matthew Turner told the news source, noting the likelihood of quantitative easing to meet poor economic performances during the second and third quarters. "Gold might struggle a little bit if things do get better but I'm skeptical that they will get much better. I think perhaps we'll see a slowdown in the economy again in Q2, Q3 and that might start to raise hopes of more Q.E."
At 8:22 a.m. on Wednesday, gold futures increased 0.77 percent, a $13.20 lift to $1,730.90 per troy ounce.
The Wall Street Journal reports the Aegean nation saw gross domestic product during the fourth quarter of last year drop 7 percent while the economy contracted as much as 6.8 percent.
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