Gold futures were dropping on Monday as worries about the deepening sovereign debt crisis pulled down the shared currency of the European Union, according to Bloomberg.
The world's reserve currency pushed to its highest value in 24 months against the 17-nation monetary unit as a consequence of troubles mounting in debt-hobbled Spain. Yields on 10-year Spanish bonds drove to their highest ever. In Greece, the two-time recipient of bailout aid since June 2010, creditors are set to assess progress the Aegean nation has made since meeting bailout targets.
"It's the dollar strength," commodities strategist Marc Ground with Standard Bank in Johannesburg told the news source. "People are definitely worried about Europe. They're relying more on the dollar as a safe haven."
At 10:07 a.m. on Monday, gold futures fell 0.73 percent, an $11.60 loss to $1,571.20 per troy ounce.
Preoccupations are growing ever-larger about Spain eventually requiring a full bailout as its fiscal issues mount, according to Reuters. Spanish media is reporting that regions of the nation are increasingly requesting aid from the government for dire financial situations.
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.