Pulling down the price of the yellowish metal during the first trading session of the week were concerns about the gravity of the sovereign debt crisis becoming more severe. Greece, the emblem of nations victimized by the scourge after receiving two tranches of emergency bailout aid since June 2010, was challenged by a political stalemate on leadership of the nation, which might push the country's withdrawal from the euro zone.
"Gold is under severe pressure. The U.S. dollar is being seen as a safe haven at the moment and as long as the dollar is appreciating against the euro this is clearly weighing on the gold price," analyst Daniel Briesemann with Commerzbank told the news source. "I wouldn't be surprised if we test the December low of around $1,520 an ounce and if we don't stop here we could go below $1,500."
At 1:02 p.m. on Monday, gold futures fell 1.45 percent, a $22.90 reduction to $1,561.10 per troy ounce.
The Wall Street Journal reports voters in the Aegean nation are likely to cast ballots again next month as a result of the inability to establish a clear leader.
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.