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.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.