Tuesday, February 14, 2012

Euro Caution Brings Gold To 1-Week Low

Gold futures went down Monday as investors stay unsure on the ability of the European market to improve its finances despite Greece showing improvements after implementing budget cuts.

The April delivery contract, the most actively traded, dove 40 cents to close at $1,724.90 per troy ounce for the Comex division at the NY Mercantile Exchange. This is the lowest ending price of the instrument since February 6.

A senior analyst at Global Hunter Securities, Jeffrey Wright says, "Until there's a true resolution and acceptance of reality on the ground in Greece... you're going to see weakness in the euro and strength in the dollar, negatively impacting gold in the near and medium term."

Gold prices experienced a steep 1.2% decline last week. Analysts are now saying that the support for near-term gold investments now lay at around $1,645 an ounce.