Gold rose in Europe Wednesday, helped in part by a softer USD, as investors sought clarity on prospects for a 2nd Greek debt bailout and the outlook for growth in the EuroZone.
Investors noted that bullion recently has not behaved typically as a safe-haven but has risen and fallen in tune with the euro, stock markets and other so-called risk assets, although this correlation did erode to an extent during the day.
The single currency eased on the day, having recently hit two-month peaks, after the risk grew of a delay to Greece's much needed 130-billion euro lifeline, while the USD eased against a basket of major currencies. .DXY
Spot gold was + 0.7% at 1,730.90 oz by 1552 GMT, while the most-active Apr COMEX gold futures contract was up 0.9 at 1,732.90.
The precious Yellow metal has gained about 10% year to date.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. www.livetradingnews.com