Futures Pros – Gold futures extended gains on Thursday, closing in on an all-time high amid concerns over the euro zone’s debt crisis and fears over ongoing violence in the Middle East and North Africa.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,443.15 a troy ounce during European afternoon trade, climbing 0.24%.
It earlier rose to USD1,444.15 a troy ounce, the highest price since March 7, when prices rose to a record high of USD1,444.60 a troy ounce.
On Wednesday, Portugal’s parliament rejected a fresh round of budget cuts proposed by Prime Minister Jose Socrates, who immediately tendered his resignation. The move was seen as increasing the likelihood that Portugal will now follow Greece and Ireland in needing a financial bailout.
European Union leaders were to meet in Brussels later in the day for a two-day summit to discuss the next step in dealing with the euro zone’s debt crisis.
Elsewhere, coalition air strikes in Libya continued for a fifth day in an effort to protect Libyan civilians from leader Muammar Gaddafi and push back his troops.
Calls for the ouster of Yemen’s president, an escalation of violence in Syria and Palestinian rocket strikes on Israel have heightened geopolitical risks in the region.
Gold is often considered a haven against political turmoil or economic downturns in part because it is not as linked to industrial production as are other commodities and equities.
Weakness in the dollar had also contributed to gold’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to hit 75.99 during European afternoon trade.
Later Thursday, the U.S. was to publish official data on durable goods orders as well as a report on initial jobless claims.
Meanwhile, silver for May delivery rallied 1.13% to trade at a 31-year high of USD37.77 a troy ounce, while copper for May delivery added 0.36% to trade at USD4.443 a pound during European afternoon trade.
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On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,443.15 a troy ounce during European afternoon trade, climbing 0.24%.
It earlier rose to USD1,444.15 a troy ounce, the highest price since March 7, when prices rose to a record high of USD1,444.60 a troy ounce.
On Wednesday, Portugal’s parliament rejected a fresh round of budget cuts proposed by Prime Minister Jose Socrates, who immediately tendered his resignation. The move was seen as increasing the likelihood that Portugal will now follow Greece and Ireland in needing a financial bailout.
European Union leaders were to meet in Brussels later in the day for a two-day summit to discuss the next step in dealing with the euro zone’s debt crisis.
Elsewhere, coalition air strikes in Libya continued for a fifth day in an effort to protect Libyan civilians from leader Muammar Gaddafi and push back his troops.
Calls for the ouster of Yemen’s president, an escalation of violence in Syria and Palestinian rocket strikes on Israel have heightened geopolitical risks in the region.
Gold is often considered a haven against political turmoil or economic downturns in part because it is not as linked to industrial production as are other commodities and equities.
Weakness in the dollar had also contributed to gold’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to hit 75.99 during European afternoon trade.
Later Thursday, the U.S. was to publish official data on durable goods orders as well as a report on initial jobless claims.
Meanwhile, silver for May delivery rallied 1.13% to trade at a 31-year high of USD37.77 a troy ounce, while copper for May delivery added 0.36% to trade at USD4.443 a pound during European afternoon trade.
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